Icesave- Martin is wrong.

No_6

I think there has been a slight rumble in Iceland today,

6 :-)

StevieJ

StevieJ wrote: »

I asked because I received the following paragraph within an email from the Motley Fool that appeared categoric.

[FONT=verdana,arial,helvetica,sans-serif]The Financial Compensation Net[/FONT][FONT=verdana,arial,helvetica,sans-serif]If you are worried about safety, the Financial Services Compensation Scheme (FSCS) is designed to safeguard your money. If your bank were to go bust, the first £35,000 of your savings per UK financial institution would be protected in full.[/FONT][FONT=verdana,arial,helvetica,sans-serif]In respect to Icelandic accounts, Kaupthing Edge deposits are currently held by UK company Kaupthing Singer and Friedlander Ltd, and qualify for the maximum protection of £35,000 under the scheme. This is the same for FBN and ICICI bank.[/FONT][FONT=verdana,arial,helvetica,sans-serif]Money held in the Icesave savings (currently paying 6.05% on balances from £1) falls under slightly different rules, as the account is initially covered under the Icelandic Deposit Guarantees and Investor-Compensation scheme. This means that the first €20,887 (currently £16,398) is protected in full by Iceland's regulator.[/FONT][FONT=verdana,arial,helvetica,sans-serif]However, savers also have a further guarantee under the FSCS, which offers 100% of the first £35,000, minus any payments made under the Icelandic scheme. [/FONT][FONT=verdana,arial,helvetica,sans-serif]Either way, these accounts have exactly the same protection as UK deposits.[/FONT][FONT=verdana,arial,helvetica,sans-serif]Take advantage of the fact that because of the credit crunch, banks are eager to get their mitts on your cash at the moment. And as long as you stay under the £35,000 compensation limit, your savings will be fully protected.[/FONT][FONT=verdana,arial,helvetica,sans-serif]And finally, don't be put off by the gloomy headlines about the credit crunch. After all, your money won't earn any interest if it's hidden under your mattress.[/FONT]

This may be of interest, it was an extract from an email I received from Motley Fool earlier in the year.

AllSpent

It's a shame a few have bashed Martin over this. Most have still enjoyed a good rate of interest for over a year from his advice. The money is still guarenteed; if you didn't want the hassle of claiming then you should have got your money out sooner. A bad workman always blames his tools!!

P.s. It's a shame Martin felt he had to defend himself today on LBC today; what a sterling job anyway!!

silentfox

Well Martin got smacked about a bit on channel 4 as to why he kept putting icesave on his best buy, but in fairness he did change his advice soon after I first posted this thread in April and also responded to the thread himself.

So personally I don't really blame him, also as he points out most people will get their money back.

Whole thing is a real shame, also it doesn't help that the PM of Iceland felt his friends (UK) weren't there to support him and now he is waiting on "new friends" ......Russia!!

Lets hope they help out as I doubt very much that the FSCS will pay out Iceland's share.

geoffky

silentfox you deserve a hug and kiss of all the huggies because you have been keeping your eye on the ball and might of saved a few some pain...so well done you for going against the herd.....

silentfox

thanks geoffky, I hope you are right. Just reading it may take up to 4 months for people to get their money back, really is very sad, I guess most people took the risk for the high level of interest being offered. I was tempted by the 7+% but luckily saw channel 4 news in April which made me investigate further and post here. Anyway hope it all works out for everyone.

Good luck.

Jonbvn

silentfox wrote: »

Well Martin got smacked about a bit on channel 4 as to why he kept putting icesave on his best buy, but in fairness he did change his advice soon after I first posted this thread in April and also responded to the thread himself.

So personally I don't really blame him, also as he points out most people will get their money back.

Whole thing is a real shame, also it doesn't help that the PM of Iceland felt his friends (UK) weren't there to support him and now he is waiting on "new friends" ......Russia!!

Lets hope they help out as I doubt very much that the FSCS will pay out Iceland's share.

To blame MSE Martin would be the same as blaming moneysupermarket.com or any of the other sites out there. They give you the information (never advice). Everything else is individual choice. Unfortunately, a lot of people see Martin as some sort of economic messiah. Current events have proven he wears his boxers inside his jeans!;)

neverdespairgirl

Meltdown wrote: »

silentfox,
why have you suddenly resorted to posting on this forum about Icelandic banks, after 15 months of nothing, and with only a couple of posts before that?
It does seem a mite strange ...

Well, he was right.

neverdespairgirl

ianmr65 wrote: »

I think that the chances of the ex bank of iceland (landsbanki, icesaves parent) colapsing are as close to zero as you can get.

But we'd rather belive that icelandic banks are unsafe, becuse rumour mongering ill informed journalits, are swayed by by people who want to make a profit, and cds numbers that they don't understand.

OK, so what went wrong? In a few months?

bazster

I had money in Icesave and benefitted from it's high interest rate.

I read and understood Martin's descriptions of the compensation scheme.

I listened to the news about the impending collapse of the Icelandic economy.

I took my money out of Icesave.

Easy, huh? So how is it Martin's fault that some people couldn't go through the same, simple process?