Icesave: how safe are your savings? Facts and myths

sly_dog_jonah

ggemmell wrote: »

I have got a cash ISA with Icesave and also a savings account which I had transferred money into a few days prior to all the stuff kicking off. This money left my bank account but is only showing as a processed balance on my print out and not cleared yet? Will this be part of the compensation process or will I have to contact my bank?

I was in the same boat, I had a 1k deposit that was pulled into my icesave ISA last Monday from my current account. It was credited to icesave on that day but is still marked as Processed. I had a subsequent direct debit deposit scheduled for last Thursday, which I was fortunately able to cancel by contacting my current account provider on Tuesday. They initially said they would refund Monday's DD under the Direct Debit Guarantee, but changed their tune the next day, claiming that it didn't cover 'banks that had gone bankrupt'.

I'd just follow Martin's advice, print your statement and claim based on that. I'm not losing any sleep over the status of that deposit.

born2run

8. Will you compensate me for any interest I have earned on my account?

Interest owed to the depositor as at the date the bank is declared "in default" by FSCS will be paid as part of the compensation amount. Notice accounts will be paid as if notice had been served on the day the account was frozen and payment will be made, including interest, at the end of the notice period. Fixed term accounts will be paid at the maturity date with the interest that would have been paid by the bank at maturity date.

On the subject of interest and fixed term accounts the above has been pulled off the FSCS website FAQ's.

I read this that they will pay out on the FTA's on the normal maturity date including the agreed total interest. I would be happy with this.

IcesaveSteven

What about fixed term accounts that pay monthly interest?

luv_my_brass

In the wake of the Icesave debacle, should we be concerned about our other savings accounts? I have savings in ING and Coventry BS. Most of my life savings are in Icesave- including ISA's, but still under the 35K ceiling. I am terrified of the possibility of losing any more.

moneymind

Hi, anyone got an update to how can we claim our money back?

jaigee_2

Just appeared on the FSCS website:

FSCS proposals for accelerated payment process being considered in Iceland (17 October 2008)

Over 200,000 UK savers with around 300,000 accounts at Icesave, the UK branch of Landsbanki, are a step closer to getting their money back this week, as the authorities in the UK and Iceland work on the process for accelerating the payment of compensation to them.
The FSCS, together with representatives of H M Treasury, the Financial Services Authority and the Bank of England, met with counterparts in Iceland last weekend. Significant progress was made and an accelerated approach to paying compensation was agreed in principle.
Since then, the UK authorities have been working on the detail of alternatives to the conventional, form-based compensation process and these have been put to Icelandic counterparts for consideration.
FSCS Chief Executive Loretta Minghella said today: "Our message to savers entitled to our protection is simple: your money is safe. Our paramount concern is to ensure that you get it back as quickly as possible, so we are doing everything we can to agree an innovative solution which will significantly accelerate the process."
Meanwhile, we have been working closely with the systems operators for Icesave, so that we can get timely access to the data we need to verify claims. We are pleased to report that we are receiving excellent co-operation from them.
The Authorities hope to settle the process over the coming days, and expect to issue guidance next week about how savers will be able to claim their money.

Woodyrocks

born2run wrote: »

8. Will you compensate me for any interest I have earned on my account?

Interest owed to the depositor as at the date the bank is declared "in default" by FSCS will be paid as part of the compensation amount. Notice accounts will be paid as if notice had been served on the day the account was frozen and payment will be made, including interest, at the end of the notice period. Fixed term accounts will be paid at the maturity date with the interest that would have been paid by the bank at maturity date.

On the subject of interest and fixed term accounts the above has been pulled off the FSCS website FAQ's.

I read this that they will pay out on the FTA's on the normal maturity date including the agreed total interest. I would be happy with this.

Sorry for being dopey but does this mean that even if everyone else gets their money back I have to wait until (May) my Fixed Accounts mature to get my money back So, icesave still get to hold on to my money?? What if the FSA has run out of money by then to pay me back!

Why can't I have my money back at the same time as everyone else I don't give a frig about the interest I just want my money back

born2run

To be quite honest until we get the official guidance from the FSA (hopefully soon!) we are all only speculating. I'm relying on HMG promise and expect everything to work out fine.

luv_my_brass

Can anyone tell me what the situation is with ISA's in Icesave?

EconomicsGirl

luv_my_brass wrote: »

Yes, I read that ING had bought up Kauptthink Edge, wish they had bought up Icesave too :-( I have a savings account with ING, and I'm hoping they are as strong a company as they make themselves out to be, The result of all this is that I do not know who to trust with my precious savings :-(

ING have just been bailed out and they also rely on the passport compensation scheme. After getting caught with Icesave I took money out of ING last week (as I was worried about having to claim two lots of compensation if ING went under (hasn't yet) and have money tied up waiting for compensation) which thankfully has gone through. With the one of the Dutch banks saying they won't bail out Icelandic banks in Holland I'ld be a bit worried about the Dutch compensation scheme though it could all be fine.