Icesave: how safe are your savings? Facts and myths

jamielovell

leapfrogx, I can log in and view my balances etc, but of course unable to carry out any transactions.

sly_dog_jonah

The FSA are saying we should expect a further announcement from icesave soon:

http://www.moneymadeclear.fsa.gov.uk/news/firm/icesave.html

Optimist

From http://www.fscs.org.uk/consumer/

FSCS gears up to assist Icesave's UK branch customers

In the light of the current uncertainties, the Financial Services Compensation Scheme (FSCS) is today gearing up in case it needs to assist approximately 300,000 savers at Icesave.

Icesave is the UK branch of Landsbanki Islands hf (trading here under the registered name Icesave). It is an EEA bank that is authorised by the Fj!rm!laeftirlitið (FME), the financial services regulator in Iceland. The Financial Services Authority in the UK has reported that Icesave is now expected to go into insolvency proceedings in Iceland and this would trigger an FSCS default.

Eligible savers with Icesave are protected by the Icelandic Depositors' and Investors' Guarantee Fund (IDIGF), up to a limit of the first 20,887 of their deposits. As an Icelandic bank Icesave is not automatically a member of the FSCS, but it opted to become a 'top-up' member. This means that eligible retail savers with Icesave's UK branch whose savings exceed the Icelandic limit would benefit from top-up compensation from the FSCS covering the amount over the Icelandic limit up to the new FSCS compensation limit for deposits of £50,000.

If the default is triggered as expected, FSCS will contact all UK savers directly with details of how to apply for compensation. Further announcements will follow and we will keep this page updated.

Please watch our website for more information.

applecore_2

From the Prime Minister of Iceland


In a press conference today Iceland's Prime Minister, Mr. Geir H. Haarde, said that if needed the Icelandic Government will support the Depositors' and Investors' Guarantee Fund in raising the necessary funds, so that the Fund would be able to meet the minimum compensation limits in the event of a failure of an Icelandic bank.

The Icelandic banks have top up agreements in the following countries:

• United Kingdom
• The Netherlands
• Norway
• Finland
• Sweden

More...

http://www.tryggingarsjodur.is/


Note: it is also important to remember that IceSave will be a priority for Iceland as it will need to prove that it can hold a stable banking system. Also, the agreement of other neighbouring countries will mean that there is a possible top-up available from them.

No nation wishes to see its financial institution in difficulty and so this is a testing time for every individual in this situation of uncertainty and also for the Government of Iceland.

What once was seen as the 1st run on a bank for over a century is now seen as one of the safest banks to keep money in. Iceland may follow suite as it has already nationalised the bank behind IceSave.

cs15

Hi does anyone know if the interest accrued is covered.
I am have a one year fixed rate savings account started April 2008.
So obviously I was due to get interest payment in April 2009.
So I have had money with them 6 months ish, I assume I will have to
risk keeping it in there until April 2009 to get the interest, or just get it out under whatever scheme asap and just accept i lose the interest?
I mean the point of having for us such accounts is to save and get decent interest returns, I appreciate these are extraordinary times but it still a pain... or will the scheme consider this as part of the cover...?

born2run

Hi cs15 - it is my understanding that accrued interest can be included in any claim up to the compensation limit i.e. £50k. I guess we will get more information with the forms from the fscs but would expect to send them info like a/c name, when opened, opening balance, interest added to date, and presumably your own calcualtion of interest owing. That is certainly what I'll be giving them anyway.

Incidentally, don't know how this will work in practice but I've also read that where you're on a fixed term bond the compensation due will not be paid before the date it was originally due - the article also said that the return would include the original amount of interest agreed - again only constrained by the overal compensation limit of £50k.

shoebridge

I have £50.000 in a Fixed Rate bond with one month to run. It sounds as if I will loose all the interest £3.500 before Tax.Seems like we cannot win .

born2run

Sorry to say Shoebridge but I think you're right.

The main silver lining for you is if Icesave had gone into liquidation yesterday i.e. before FSCS had raised comp level, you would have lost another £15k as well!

cs15

they should honour it, theyve had our money, so they should pay the interest....

shoebridge

born2run
You are so right, I AM thankfull for that, it could have been much worse.