Icesave: how safe are your savings? Facts and myths

luv_my_brass

EconomicsGirl wrote: »

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.

Yes, think I will do the same thing. Heard on the news that there had been a bailout for ING which kinda sounds like trumpets of doom. Have been perusing this site for another savings provider and think I will take up the Tesco offer. I know it helps if we access these sites directly from this one but cannot find a link.

EconomicsGirl

I just opened a Tesco Internet saver - its paying 6.5% though 1.5% is a bonus for 12 months (so will need to review it then) and you also get lots of clubcard points if you have a clubcard - I don't and it said you could open one at the time but you couldn't so best to enter number at the time you apply. The website was https://www.tescofinance.com Has its own banking licence which is good.

jaigee_2

UK plans 3bn loan to Iceland to compensate Icesave savers, full story here:

http://www.ft.com/cms/s/0/108635c0-9...nclick_check=1

jaigee_2

Latest on the FSCS website:

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

amnesiacjimmy

On the night of Oct 5th I rang Icesave to see if we could transfer our savings and were told no problem. I was told if we took everything out our account would be closed. Of course, the money has not gone through and now I can't log into Icesave so we are greatly worried that we will be overlooked in any compensation as we may have gone off the radar. Luckily I printed out the Icesave balance and have my other bank records showing that nothing has gone in, but I wondered if anyone else is in the same position????? There don't appear to be any FAQs relating to our situation. It is a massive worry. Please if you in similar scenario leave a message. Thanks!

jaigee_2

amnesiacjimmy wrote: »

On the night of Oct 5th I rang Icesave to see if we could transfer our savings and were told no problem. I was told if we took everything out our account would be closed. Of course, the money has not gone through and now I can't log into Icesave so we are greatly worried that we will be overlooked in any compensation as we may have gone off the radar. Luckily I printed out the Icesave balance and have my other bank records showing that nothing has gone in, but I wondered if anyone else is in the same position????? There don't appear to be any FAQs relating to our situation. It is a massive worry. Please if you in similar scenario leave a message. Thanks!

Just read this question and reply to someone who has a similar problem, it might work.

"I am very concerned about my savings with icesave. I was led to believe I had made a success withdrawal of my money, by telephone, on October 7th. My account was deleted at the same time! I soon realized that my withdrawal had been stopped when I called icesave. However, because my account had been deleted, I was obviously unable to get a printout of my account. I have written to them, emailed and tried calling on numerous occasions, but to no avail!
I have received no notification of how to get compensation at all. I am at a total loss, no proof that I have money with the bank. What do I do? Icesave is uncontactable."


"I had exactly the same problem as you, but I clicked on the link “reset your password” (just under the icesave login) and this worked - the new password that was emailed to me “unlocked” my account and I could get in and see my final balance - which I PROMPTLY PRINTED OFF."


The link is:

http://www.thriftyscot.co.uk/102008/icesave-customers-receive-extra-help.html

TomatoBoy

Okay, so some (hopefully most) of us have received our first email from the FSCS. A queston about bonds if I may (perhaps Martin is already looking at this - I hope so).

With the massive base rate cut today and Martin's urgent email urging people to fix their savings rates those of us awaiting the return of Icesave bonds appear to be in a state of limbo. By the time a further four or five weeks (minimum) passes and our cash is refunded fixed rate bonds will be worth considerably less in terms of interest.

Now we can leave our compensation until the bonds mature and some will achieve over 7% interest, however, it would be nice to obtain further information as to how precisely the 'delay for full interest' scheme will work and how secure it is as well.

I had hoped, as presumably others did too, that any bonds left until maturity would be in some way transferred into Government run accounts (NS&I, NR and so forth), but it appears that the bonds (left to mature) will remain the subject of a default instead, and one that will not have repairation until the maturity date. In short, our funds will remain 'lost' and simply not compensated for what might be years in some cases (depending on the bond term). That is a long time to sit and wait with no statements, no documantation and just a Government/FSCS promise that all will be well.

What do others feel, wait for the 7% on a promise or reinvest at (possibly as low as) 4.5% elsewhere?

Perhaps it is possible to obtain further details of how this proposed scheme will work and some indication of the strength of the promises made.

Thoughts please

rosebud666

Yes, That is what worries me. I would require writen proof of when and how much I will be paid before I decide what to do. They have already made mistakes in interest on my A/C as far as I can see.

welshmule

thanks to this site just found my e-mail dated 4/10/08 in my trash - which I was thinking about emptying a couple hours ago!! Thanks to all.

born2run

I emailed the FSCS regarding who would be 'holding' my balance if I kept the bonds running until maturity and also who would be providing me with a cast-iron, irrefutable guarantee that the 'cash' would be 100% safe until the maturity date. I have just received the following reply:

Dear Icesave customer

Thank you for your recent enquiry.

Please note that due to higher than usual demand it may take us longer to answer your calls and emails, and we are currently unable to provide you with a personalised response. We apologise for any inconvenience this may cause.

In your email you have asked who will administer fixed rate savings for customers who opt to receive the proceeds at the maturity date. I can confirm that the monies will not be held or administered by any organisation. For these customers, shortly after the maturity of the account, they will receive compensation from FSCS for an amount equivalent to the principal sum and interest they were contractually entitled to receive from Icesave.

If you hold a fixed rate savings account that pays interest on a monthly, quarterly, or annual basis, and you decide to hold that account until maturity, you will not be paid any interest prior to maturity. All interest will be paid after maturity.
Please refer to our website for further information, which contains Frequently Asked Questions about Icesavehttp://www.fscs.org.uk/consumer/ .

However, if you are still unsure about any matter, please call our helpline on: 0845 7300 131. We will try to respond to your query as soon as possible.

Yours faithfully

Customer Services Team
Financial Services Compensation Scheme


The first point from my email was answered - as has been said by others the FSCS are not ring-fencing our account balance they are purely providing a compensation service (which is fair enough but provides no visibility of our accounts). Regarding my second point re how any cash guarantee works no reference at all was made which is a bit concerning!

Until they can provide this information I will be minded to take the funds as soon as available and take the interest hit.