Icesave: how safe are your savings? Facts and myths

its_only_money

Related to this topic - I have a more than 35K in 6 month and 12 month bonds. The rules are that no withdrawal/closure can be made until the time period ends. I contacted Icesave who initially said no withdrawal means exactly that. On further questionning I was told if there was a specific and unavoidable need to have the money, example given was buying a house, I could extract the money.
Does anyone know if there is a legal right to close an account please? It seems rather arbitary the way Icesave have explained it to me.
TIA

d10

I have an easy access account as well as fixed rate accounts with Icesave..I am going to stick with them as their rates and customer service is excellent. I too have read all the media cover about the safety of the bank but after thinking long and hard I have decided to stay with them - under £35000 of course (as with any other bank)!

herbie72

I'd be grateful if someone could quickly clarify the situation about the £35,000 that's safe if a bank goes bust.

I have £50,000 to put away, so I was thinking of topping up my IceSave ISA, then putting £35K in this other Icelandic high interest account and the remainder elsewhere.

But if, in a year's time, the banks went bust, I presume I would only get back the £35,000 I initially put away, and would LOSE the interest earned on it (ie. about £2,500)? Is this the case? Could someone please clarify this?

Would it therefore be better to put £25,000 or £30,000 in there instead, and put smaller amounts in other accounts? That way, the interest would be safe, too. Or am I just being a paranoid idiot?!

Thanks..

sam2142

It is £35K per person not per account?

terryw

revere148 wrote: »

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Charles MacKay :eek:

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bw

terryw

old_wrinkly_2

Been reading the article on Icesave with interest.

My wife wants to put her £3600 allowance into a cash ISA and as iIcesave is the "best buy" have been looking at that but wary as it's a non-UK bank.

If I am reading correctly if she invests her £3600 allowance then she is as well covered as if she invested with a UK bank. The only potential problem is for savers with excess of £35K who do not have the same protection as with UK banks due to the Passport opt out.

Could someone confirm that I am interpreting this correctly?

Thanks

RMM

So..where is a safe place (with good intrest) to invest in a cash ISA?

Anne_Elize

Noticed this on the Icesave website today. Does this mean they are now fully in the FSA scheme? I'm confused.

"Peace of mind with Icesave:
Part of international banking group, Landsbanki
Regulated by the FSA
Subscribers to the UK Financial Services Compensation Scheme
Subscribers to the Banking Code"

from http://www.icesave.co.uk/easy-access-isa.html

Nervous_Norvus

If you have £35000 in Icesave and it goes bust, you will have to rely on Icelandic government to pay you the first £16500 approx. Only the balance over and above this is covered by the FSA scheme.

Anybody else notice that Iceland has 18 Billion krona balance of trade deficit for July 08? It's to be hoped this is a freak result. I still have money in Icesave bonds, though one matured last month and paid out without problems and I took that money out. All three major Icelandic banks reported good half year results in last few days.

luv_my_brass

livelongand_prosper wrote: »

well, not having much dosh, it took me long enough to decide to invest my paltry minimum isa, having taken martins advice and the downfall over here. so what do i do now, as the song says ' should i stay or should i go'. grandma used to have her savings under the mattress, am wondering if that's the best place with all this uncertainty!!

I have about 20k in total with iceland - a savings account and isa's, because they were paying the best rate at the time. Is it a bad idea to have so much invested in one company? I am always looking for the best return on my savings and wonder if I should change again. The Halifax offshore account is paying 10%, I can tie up 10k for the required 12months.