Icesave - any catch?

rathernot

OK I've been deliberating for a while about who to use for a "high interest" account to dump £35k into and probably an additional few hundred quid every month.

Basically I want monthly interest and no penalties for withdrawals.

Icesave seem the best bet.

Tbh I'm wary because of the sums of money involved and the fact it's not a high street name.

Don't get me wrong I don't have nightmares about the boys from Reykjavik doing a runner with my money, I'd just appreciate a little re-assurance over who Icesave are and that my money is safe etc.

kingmonkey

http://en.wikipedia.org/wiki/Landsbanki

rathernot

Cool thanks - main concern is that my money wouldn't be at risk due to any changes in laws/regs in Iceland - presumably any bank/building society operating in the UK has to agree/adhere to the guidelines so one is as safe as another?

Also just spotted The Chelsea's Call Direct 30 which looks interesting as the penalty is 30 days interest on the amount withdrawn.

YorkshireBoy

rathernot wrote: »

OK I've been deliberating for a while about who to use for a "high interest" account to dump £35k into and probably an additional few hundred quid every month.

Basically I want monthly interest and no penalties for withdrawals.

Why do you want monthly interest if you're putting money in each month? It doesn't sound like you need the income.

If you have a Halifax current account, the Sainsburys Internet Saver may be an option (and it pays a higher rate of interest than Icesave). Transfers in (from Halifax) are instant, and transfers out (to Halifax) take only one day.

YorkshireBoy

rathernot wrote: »

...presumably any bank/building society operating in the UK has to agree/adhere to the guidelines so one is as safe as another?

Correct. The first £35,000 is 'protected', with a max payout of £31,700.

http://www.fscs.org.uk/consumer/key_facts/limitations_of_the_scheme/compensation_limits/

rathernot

YorkshireBoy wrote: »

Why do you want monthly interest if you're putting money in each month? It doesn't sound like you need the income.

No logical/rational reason tbh, just prefer seeing the monthly extra over an annual lump, so long as the AER is the same etc.

How does the Chelsea's penalty work? It says:

"30 days’ prior notice for withdrawal is required; failing which if notice is not given then a penalty equivalent to 30 days’ loss of interest (calculated at the gross rate) on the amount withdrawn will be applied."

Which I take to mean - I put in £35k and take out £1k with no notice. At the next interest date I get the full interest on the account balance, less the interest I would have earned on the £1k over the last 30 days?

That sounds tolerable for 6.4%.

kingmonkey

rathernot wrote: »

presumably any bank/building society operating in the UK has to agree/adhere to the guidelines so one is as safe as another?.

This is true. (just that its not guidelines its regulations)

DawnW

I have had an account with them for some time. It took a while to open as there was a bit of a rush on at the time. However, it has since been totally trouble free and it is simple to transfer money between Icesave and your nominated account. What is more they have British call centres, and I have found the customer service pretty good, on the odd occasion I have had a query.

KingKenny

rathernot wrote: »

No logical/rational reason tbh, just prefer seeing the monthly extra over an annual lump, so long as the AER is the same etc.

How does the Chelsea's penalty work? It says:

"30 days’ prior notice for withdrawal is required; failing which if notice is not given then a penalty equivalent to 30 days’ loss of interest (calculated at the gross rate) on the amount withdrawn will be applied."

Which I take to mean - I put in £35k and take out £1k with no notice. At the next interest date I get the full interest on the account balance, less the interest I would have earned on the £1k over the last 30 days?

That sounds tolerable for 6.4%.

Look at the guarantee, it is a joke, if you do open this account watch it like a hawk, because the one thing Chelsea do is launch this type of high rate paying account. Then when you are not looking they all of a sudden drop the rate of interest!:rotfl:

You see, look at the small print, if they did not intend to do (drop the rate) this, then why have they guaranteed not to be below BOE base rate; instead they would have guaranteed to be above BOE base rate say by 0.5% for the first twelve months.

The Chelsea, are very shifty, i would go with ICE Save, so far they have been very good and honest!:beer:

Unlike the Chesea outfit.:eek:

So ICE Save NO CATCH

Chelsea Riddled with catches

missprint

I've also been with Icesave since they first appeared and they've been absolutely fine, very easy to deal with.

rathernot

Cheers all - just signed up with Icesave.