Kaupthing Edge Savings Rate Frozen For Now

ManAtHome

Found something on the Leeds site http://www.leedsbuildingsociety.co.uk/savings/fscs.html - looks to me like interest up to "down the swanee day" is covered.

relevent bit:
"Interest on an Account
Interest earned on accounts at the time the shares or deposits become due and payable is covered by the Scheme (within the limit of the maximum payment). If a winding-up order against a society has been made by the Court, interest will immediately stop being paid on the society's accounts."

Swipe

Yeah, that seems to confirm interest will be paid. Thanks for clearing that one up.

moneylover

I am very impressed by the 7.16% three year rate as there are no other banks/building societies offering anything like that so far as I can see. Would stay well below the £35000 FSA cap if I invested.

I have most of my capital in fiixed rate bonds which I roll over each year into the best bonds on offer at the time as am coming up to retirement. Am a bit concerned that if I have all my money in the current high rate one year bonds there may be nothing good around when they are all maturing.

Would be interested in others views.

Fella

Swipe wrote: »

Yeah, that seems to confirm interest will be paid. Thanks for clearing that one up.

But the key thing would then become the length of time between the winding-up order being issued & savers getting their money back. No interest would be paid during that time.

Swipe

Fella wrote: »

But the key thing would then become the length of time between the winding-up order being issued & savers getting their money back. No interest would be paid during that time.

Yes, the FSA website states a maximum period of 6 months but, in all honesty, that would be the least of my worries. I'd be happy just to get my money back.

firsttimetom

Hmm, There are a few too many of these 'Icelandic banks in trouble' articles cropping up for my liking.

I've just put £4000 fixed for 6 months with Icesave and arranged the Direct Debit for £16,000 (should clear Tuesday) which will be fixed for a year.

I have also arranged to transfer my ISA in, which is £13,000. All in all, this is 33k, so still below the FSA limit, but I'm now a little paranoid to say the least.

Is anyone else feeling like this, or are you going to stick with Icesave etc?

I didn't even have an account with them 2 weeks ago but read so many good things about them that I got in on the act.

KTF

To be honest the 'stories' dont bother me one jot. Do you worry about Abbey being owned by a Spanish bank?

moneylover

moneylover wrote: »

I am very impressed by the 7.16% three year rate as there are no other banks/building societies offering anything like that so far as I can see.

Have just realised that its not as good as I thought as its 6.7% AER and 7.16% gross. This presumably means that no interest is added to the account until the 3 years is up? At the moment I am a higher rate taxpayer but in 3 years time I won't be - this would mean that the tax I paid on the interest would all be at lower rate - I wouldnt have to declare any 'notional interest' in year one and two? Thanks if anyone knows!

masonic

Swipe wrote: »

Yes, the FSA website states a maximum period of 6 months but, in all honesty, that would be the least of my worries. I'd be happy just to get my money back.

Sure, but losing 6 months of interest would rather invalidate the whole concept of sticking your money in that account because it has a high interest rate.

Swipe

I guess for the fixed rate accounts you don't have much choice but to stick with them. I'm in the same boat but for 2 years. If things are so bad and the 3 major Icelandic banks go under then the whole of Iceland is shafted.