Icesave: how safe are your savings? Facts and myths

maciemay

I have savings bonded with Icesave and are 40k over the limit that is safe, is there anyway I can insure that 40k if the bank goes bust?

martinm1

maciemay wrote: »

I have savings bonded with Icesave and are 40k over the limit that is safe, is there anyway I can insure that 40k if the bank goes bust?

Hi you can insure - but why not just split your money as the insurance will be more than the 0.5% loss in interest by putting with another provider that is part of the compensation scheme in the UK

rmcelduff

I have an ISA at Icesave with last years allowance in (plus interest). When I took it out I (probably naively) opted for interest paid annually; going for the seemingly higher rate. Was I wrong to think this? Exactly what is the difference and should I change to monthly interest?


Hey i asked this question earlier in the topic. Anyone care to explain the difference / benefits to either?

lowbrim

There is actually no difference in interest rates IF you re-invest your monthly interest payment you receive each month into the same account. Essentially by opting for yearly interest the bank does it for you. So you are not losing or gaining whichever route you chose.

revere148

I have been with Icesave for about a year with no problems. I have just transfererred two other Isa's to them. I think they are as safe as any other bank. A lot of the UK banks would like to see them go under but I don't think that will happen. If I had any worries at all I would close my account immediately. I work too hard for my money to chance any risk of losing it.

'Extraordinary Popular Delusions and the Madness of Crowds?'
Charles MacKay :eek:

merseyscouse

rmcelduff wrote: »

I have an ISA at Icesave with last years allowance in (plus interest). When I took it out I (probably naively) opted for interest paid annually; going for the seemingly higher rate. Was I wrong to think this? Exactly what is the difference and should I change to monthly interest?

Hey i asked this question earlier in the topic. Anyone care to explain the difference / benefits to either?

The only reason i can think of for receiving monthly interest is if you wanted to draw the interest out to live on rather than re-investing it.

baby_boomer

Someone might want monthly interest if they were worried that the compensation scheme won't cover

a) accrued interest above £35K or

b) interest due but not paid into your account before the bank went bust

It's not as if we have past examples to draw on so that we can say conclusively what will happen with the FSCS compensation scheme.

baby_boomer

Martin says

a) it's difficult to know which banks and building societies may get into difficulty.

b) he's not going to make any predictions because it's not possible for the site and even the experts get it wrong

c) he'll make sure that any MSE recommendations are properly backed by the various compensation schemes.

Is he right that the best approach is to save your £35K in the top paying bank without trying to find one which is financially stronger than some?

The Coventry Building Society, for instance, hasn't gone down the sub-prime lending route and has no exposure to dodgy US mortgage-backed investment vehices.

djp153

ICESAVE Exercise extreme caution if considering opening an account. Today I have failed yet again to gain access (withdraw) some money from my "EASY ACCESS" !! Account. They appear? to have lost the direct debit mandate(specifying where money is transferred) despite me having a written confirmation from them. Their telephone advisors don't seem to be on the same hymn sheet as one confirmed an email copy of said letter would result in problem being sorted, no action followed and further 'phone calls elicited response that email was not acceptable as details were not on their system-despite their system sending them to me!! What was worrying were the gaps in conversation(whilst supposedly searching for details) and the increasing reluctance to discuss MY problem (referring to someone in background who they resolutely refused to pass me onto). I am now told that it could be two weeks before I can access my money and I am afraid that they are so desperate to minimise withdrawals that they will tell you anything. Perhaps I'm being paranoid and imagining a conspiracy but I would wait a week or two before considering their so called bank. I was also told there was no one on site in a supervisory position and no one who could discuss details further presumably the call centre is in a shed in someone’s garden?

john_r_6

People seem to be getting a little off-topic -- I thought the point was to discuss whether it's safe to save with the bank rather than to discuss their customer service. (For what it's worth, I've been with Icesave for a little under a year now, and their service has been fine. I've had to contact them a few times and they've sorted out the issues quickly. The only problem I've had with their website is forgetting my security details!)

Like Martin says, it seems hard to try to pick and choose which banks are going to go bust. For now, Icesave is offering the best rate, so I'm going to stick with them. Moreover, the fact that their financial compensation scheme appears to have a pot of money to back it (unlike many others) must be a good thing, right?

For me, Icesave simply offers the best deal.