Icesave

ianmr65

noh wrote: »

Only becomes a profit if they can manage the exchange rate risks effectively.
If you look at this link http://www.tititudorancea.com/z/gbp_to_isk_exchange_rates_british_pound_iceland_krona.htm
you will see that in recent weeks there has been 10% changes.

Nigel

Yeah, they can, the three banks had hedged for the recent 18% fall, as they were expecting it, made a £1bn on the way down, and expect to make 1/2 billion on the way back up (the krona is climbing again).

Not sure what the icelandic krona lending and deposit rates are, but their economy is overheating, and inflation is on the rise, so the central bank acted to cool things down a bit. Whilst they get there hydro power stations, and alluminum smelters on line which should boost foreign exports significantly, and get the current account deficit back a bit.

As to be honest iceland and it's banks are in need of foreign reserves, rather than krona which they have lot's of, so regardless of what the central bank rates are for krona, it's how much reserve that krona can buy, that matters. So you're right about the exchange rate being a significant factor.

And even if they wanted too, imagine what the reaction would be if they started offering 10-12% saving rates here!!!
On one hand the rest of the market would scream blue murder, and accuse them of desperation, and re-inforce the rumopur mill,
and on the other it would send an even greater flow of funds to iceland seriously hampering the more vunerable UK based bank's ability to operate. Either way i don't see it happening.

1echidna

ianmr65 wrote: »

Whilst they get there hydro power stations, and alluminum smelters on line which should boost foreign exports significantly, and get the current account deficit back a bit.

I wish them luck in getting their aluminium smelters on line quickly and smoothly. Unfortunately this does not always prove to be the case with new heavy industrial plant.

chesky369

...Unfortunately this does not always prove to be the case with new heavy industrial plant...

It'll be OK unless they have BA in charge.

Griffboy

planemad wrote: »

Yeah pay us British savers 6.05% and lend that money out in Iceland for 15%.
That amounts to a nice bit of profit for Landsbanki.

Why can't we get, say 12% interest from Icesave? After all it is in Iceland and not the UK. :j

chesky369

"Why can't we get, say 12% interest from Icesave"

Why can't we get say 12% from Lloyds TSB or Barclays, both made incredible profits this year?

Meltdown_2

Originally posted by Griffboy :

Why can't we get, say 12% interest from Icesave? After all it is in Iceland and not the UK.

No. Icesave is a UK account. Landsbanki is a bank, registered in Iceland, that operates that account in the UK.
If you would like to invest in a krona account in Iceland with Landsbanki, then 12% might well be possible.

Apparently so :
http://www.landsbanki.is/Uploads/documents/UmLandsbankann/vaxtaakvordun_080411_enska.pdf

Griffboy

Meltdown wrote: »

Originally posted by Griffboy :
No. Icesave is a UK account. Landsbanki is a bank, registered in Iceland, that operates that account in the UK.
If you would like to invest in a krona account in Iceland with Landsbanki, then 12% might well be possible.

Apparently so :
http://www.landsbanki.is/Uploads/documents/UmLandsbankann/vaxtaakvordun_080411_enska.pdf

Worth a try.;)

hyposmurf

I do like what Ice save offer and I'm a customer the only nag I do have is that the logging in is overcomplicted.I still havent been able to log in for the last week.Keeps asking me for digits that arent in my preset questions.So Im locked out and have had my passwor broken in two and account number take so long to arrive Ive mislaid part of the password.Im going to carry on with Icesave as I still have confidence in them and like what they offer(barring the security)

Baldur

hyposmurf wrote: »

.....the only nag I do have is that the logging in is overcomplicted........

I haven't found the Icesave login process any more complicated than any of my other online accounts, in fact it's easier than some.

Griffboy

Baldur wrote: »

I haven't found the Icesave login process any more complicated than any of my other online accounts, in fact it's easier than some.

Me neither. Maybe it's a Caps Lock thingy.