Icesave: how safe are your savings? Facts and myths

jp01_2

jack111 wrote: »

I donot think any western european banks are going to be allowed to go bust by the government.
The first country to do so is going to see all investors take their money out of their banks with castostrophic consequences.
http://news.bbc.co.uk/1/hi/northern_ireland/7643572.stm
http://news.bbc.co.uk/1/hi/business/7643638.stm

History lesson.

Do you know how many banks went bust in 1920's?
16,000.

Care to think again?

luv_my_brass

They would appear to be changing their site, it is now known as webair and is described as being 'the future home of Icesave'. I'm crossing everything that all is well because I have a lot of my hard earned savings with them.:eek:

Jocten

Pancakes wrote: »

Does anyone know why the Icesave website is down? Mass transference of funds out perhaps??

It appears to be up and running today. I sincerely hope that there is not a mass transference of funds.

Jocten

Just spoken to an operator at their security centre, to reset my password, and I asked her about the situation. She assured me that monies in Icesave accounts came under the UK banking compensation scheme, and as from Tuesday 07 Oct, that means up to £50,000 or £100,000 for joint accounts.
This isn't quite what Martin is telling us, ie, the Passport scheme where outside banks can opt out of the UK scheme, and you have to chase the Icelandic Government for part of your savings.

Can anyone please clarify the exact position of Icesave, with reference to the UK banking compensation scheme.

Regards, Jocten

flightinfo

They do operate the Passport scheme so you would have to go through the Icelandic government for the first 20,887 euros.

Taken from their website today:


I heard that the Financial Services Compensation Scheme limit is being increased to £50,000 – does this apply to Icesave?

Yes – the new deposit protection limit will apply to deposits held with Icesave and comes into effect on Tuesday 7 October.
This will mean that, with effect Tuesday 7 October, if we cannot pay any amount we owe you on your savings accounts, you will be able to claim compensation. The maximum compensation is limited to 100% of the first £50,000 of your total deposits held with us.
The compensation itself is provided by two schemes (sometimes referred to as a passport scheme) – the end result being that the total amount protected is the same as if your savings were only protected by the UK Financial Services Compensation Scheme. The protection works as follows:

• The first level of protection is provided under the Icelandic Depositors’ and Investors’ Guarantee Fund (www.tryggingarsjodur.is). The maximum protection under this scheme is 100% of the first €20,887 (or the sterling equivalent) of your total deposits held with us.
• The second level of protection is provided by the UK Financial Services Compensation Scheme (www.fscs.org.uk). This scheme tops-up your protection so that the protection under both schemes, is equal to 100% of the first £50,000 of your total deposits held with us.
• Under EU law compensation for any losses incurred due to the failure of a bank should generally be paid within three months - regardless of whether it is through a passport scheme or the UK Financial Services Compensation Scheme.

luv_my_brass

Thanks for that info, I guess we are all feeling a bit jittery over our hard earned savings at the moment, ( and who can blame us? ) but we have seen what happens when we rush to take out our money (NR) Do we want to cause more stampedes and the possible collapse of more banks?
Martin must have his work cut out for him at the moment - keeping us all informed of the best thing to do. I'm crossing everything and keeping my ear to the ground........
One thing all this uncertainty has taught me - spend a bit more! I've been a bit of a miser over the years, saving every penny I could, thinking money saved would afford me a more comfortable retirement :rolleyes:

FatalSaviour

I'm not sure if this has been answered elsewhere, but if the worst were to happen, and you manage to lodge a compensation claim for a (i.e. £10k) ISA successfully, do you receive all capital, plus interest up to that day?

Also, what happens with regards to your ISA allowance? Would one be able to invest the money received from a compensation claim (all the £10k) into another ISA?

Best Regards,

FatalSaviour

mykw

I just opened an ISA with Icesave last week, although I've not yet deposited any funds at all.

Due to all the uncertainties I'm relucant to do any deposit, so if I was to phone them and cancel my account would that mean I can not open another ISA with anyone else in this tax year?

I'm sure the answer lies somewhere else on this site, but grateful for a quick response from the much-more knowledgable on here.

Optimist

Well if this is true it would hopefully make Icesave a more secure bank

Local media DV.is reported today that according to their sources Kaupthing bank would buy Landsbanki with the back-up of the Icelandic government. According to the same source the problems of Landsbanki have been growing since Glitnir bank was taken over by the Icelandic Government. There have been crisis meetings in closed offices around Reykjavik, the capital of Iceland, where this has been on the agenda.
There seam to be two main talks on how the banks in Iceland will be managed, the first is that Kaupthing is to buy Landsbanki and Glitnir will keep on being in ownership of the Icelandic government and the other is that the Icelandic government in coop with Landsbanki and Kaupthing will split up Glitnir’s assets and the two banks will take them over.
http://www.icenews.is/index.php/2008/10/05/kaupthing-to-buy-landsbanki/

wend33

Optimist wrote: »

Well if this is true it would hopefully make Icesave a more secure bank

Local media DV.is reported today that according to their sources Kaupthing bank would buy Landsbanki with the back-up of the Icelandic government. According to the same source the problems of Landsbanki have been growing since Glitnir bank was taken over by the Icelandic Government. There have been crisis meetings in closed offices around Reykjavik, the capital of Iceland, where this has been on the agenda.
There seam to be two main talks on how the banks in Iceland will be managed, the first is that Kaupthing is to buy Landsbanki and Glitnir will keep on being in ownership of the Icelandic government and the other is that the Icelandic government in coop with Landsbanki and Kaupthing will split up Glitnir’s assets and the two banks will take them over.
http://www.icenews.is/index.php/2008/10/05/kaupthing-to-buy-landsbanki/

Not such good new for me - I have an ISA with Icesave and savings with Kaupthing - if the 2 banks became 1 institution that would be only covered for £50k