Kaupthing Edge Savings Rate Frozen For Now

Fella

masonic wrote: »

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.

Yeah, that's what I'm getting at.

And if you spread your savings around to avoid breaching the £35K limit, by definition you are increasing your chances of investing in an institution that goes bust.

My view is that there is no perfect strategy, you just have to find the best IRs you can at a risk-level you can tolerate.

bristolleedsfan

Fella wrote: »

Yeah, that's what I'm getting at.

And if you spread your savings around to avoid breaching the £35K limit, by definition you are increasing your chances of investing in an institution that goes bust.

My view is that there is no perfect strategy, you just have to find the best IRs you can at a risk-level you can tolerate.

Absolutely correct, their just happens to be a lot of prophets of doom about both in the media and elsewhere.

Steve_xx

Fella wrote: »

Yeah, that's what I'm getting at.

And if you spread your savings around to avoid breaching the £35K limit, by definition you are increasing your chances of investing in an institution that goes bust.

................or decreasing your chances by not putting the lot in the one that does go under!

Steve_xx

firsttimetom wrote: »

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.

Don't worry, I'm sure you'll be ok. You are under the 100% protection limit as things are today.

Swipe

If anyone is interested in reading the Moody report all these articles are based on it can be found here:

http://www.sedlabanki.is/lisalib/getfile.aspx?itemid=5648

ManAtHome

Cheers Swipe, good reading.

I remember turning up a few "doom and gloom" articles about IceSave just after I opened an account this time last year. A bit concerning until I noticed they were all dated 2004/5. Working on my historical graphs of raffle/pub domino-card winnings, I'm sticking with the "spread it around" theory rather than the "pick the winner" theory...

DeepSporran

moneylover wrote: »

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?

I believe you're correct. From the Ts&Cs on their website:

22.1.1 Fixed Term, Unbroken Deal

a) Interest Calculation

Interest will be calculated on the Deal Amount, for each calendar day during the Deal Term, excluding the day of expiry if it is a Business Day, or if it not a Business Day, the Business Day after the Deal Term expires. The interest rate is fixed for the full Deal Term as detailed in the Interest Rate section of the Website.

b) Interest Payment

Interest will be paid into the Savings Account at the end of the Deal Term.

So the Deal Term is 3 years, and they calculate interest at the rate of 7.16% per annum but only add this to the account at the end of the 3 years. That works out the same as if they'd calculated it at the rate of 6.86% per annum but compounded it annually. Hence the AER is 6.86%.

It is only paid at the end of the 3 years, so this would be helpful for your tax position.

Stompa

Just went through the application process and it's asking me to send an orginal bank statement to them as proof of ID. This has to be sent to:

FREEPOST KAUPTHING EDGE

I guess it must be correct, I just don't ever recall seeing a single line address before?

martyn4764

Stompa wrote: »

Just went through the application process and it's asking me to send an orginal bank statement to them as proof of ID. This has to be sent to:

FREEPOST KAUPTHING EDGE

I guess it must be correct, I just don't ever recall seeing a single line address before?

Yes, it's perfectly possible to have a "Freepost Name" address like that.

MrWolf_2

Swipe wrote: »

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.

The term Major is relative. The population for the whole of Iceland is considerably less than the population of Norwich. I have to wonder how Iceland can support 3 viable "Major" Banks. The answer is, it cant and has to look for overseas cash. ie Yours!