Icesave

I logged on very early this morning and was able to put in a request for a withdrawal to my linked bank account, which was accepted at the time. I now see that all transactions have been frozen as news breaks that the Icelandic government have taken control of Landsbanki.

I still have a lot of money in a fixed deposit with Icesave which is not due to mature for another year yet, so I couldn't withdraw that anyway. I've no idea whether I'll ever see any of that money again.

As I'm writing, I've just heard that the Icelandic government has secured a $US5 billion loan from Russia which they say will be used to prop up their currency and secure foreign deposits with their banks.

Chris

I'm in the same boat Chris, £24,000 in fixed rate, and £7,500 in ISA. We are covered by Fsa compensation, the problem is you have to claim the first 19,000 euros from the Icelandic compensation scheme, If the whole country goes belly up we may have to wait a long time.

Also, AIUI, neither compensation scheme covers outstanding interest (or interest accruing while you wait for your money back?) just the capital??

On Tue, 7 Oct 2008 11:13:05 +0100, GSV Three Minds in a Can <

Took £20,000 out last week and applied to take £25,000 out yesterday, leaving under £3000. The site accepted it... but whether it will actually go through who knows.

I doubt we'd get interest but I'd be hugely relieved just to get capital back sometime.

Unfortunately I had a bit more than that with Icesave. £50,000 in a fixed deposit and £10,000 in their Easy Access account. I requested a withdrawal of the £10,000 this morning before accounts were frozen to try to bring my deposits back within the protection limit, but I doubt whether that withdrawal will be honoured now.

I've just read that Landsbanki have now gone into receivership.

Chris

According to the bbc's web page "But claims from the UK would all be handled by the UK authorities. "

Anyone know for sure?

Let's hope they are right, i would not like to get an Icelandic interpreter. All we can do is wait.

Let's hope they are right, i would not like to get an Icelandic interpreter. All we can do is wait.

Indeed. I have £19k in an Icesave ISA. I managed to access my account last night and close the account down with a transfer to my current account. ( I knew that I'd lose the ISA wrapper but ISA transfers can take weeks and I didn't want to wait that long). I was advised, prior to completing the transaction, to print off the transaction details and balance (which I did) because once the account was closed I would not be able to access it any longer.

I don't know now what is happening. I was hoping that because the transaction went through on-line it would be honoured - but bearing in mind the latest news I doubt that the transfer (which should have been processed today), will go through.

I'm just concerned that if it comes to making an FSA claim that I wont be told: "Your account was closed and there is no longer any record of it." !!

Ret.

The gist of this seems to be that Iceland's government has left the banks to survive on their own, without a paddle:

Not that the FT can run a website. I won't register to read such things

- and they tell me "You have viewed your 30 days allowance of 4 free articles". Absolute rubbish.

But back to Iceland - their government is supposedly guaranteeing part of the deposits anyway, so they're stuck. If Reykjavik renegues, does the FSA pick up the full tab, or tell us all 'tough'?

According to The Times, if the icelandic govt cannot pay th compensation then the Norwegians, Swedes and Danes will do it for them.

That's something that I've wondered about - and I cannot find the answer. The FSCS web-site does not give an answer to that!

Ret.

According to The Times, if the icelandic govt cannot pay th compensation then the Norwegians, Swedes and Danes will do it for them.

That's somewhat comforting - but I'm baffled as to why those countries should want to help bail out UK savers!

I've e-mailed the FSCS and asked them what the situation is should the Icelandic Gov't not be able to fulfil its commitments under the Icelandic compensation scheme. If I get a reply (and I suspect they will be inundated with queries today!) then I'll post their response here.

Ret.

I've just noticed that although they're not allowing deposits or withdrawals, it is possible to alter the way interest is paid. From 'annually into the icesave a/c'(*) I've changed that to 'monthly, to UK a/c'. Be interesting to see if that's honoured or not.

The Times article suggests our FSA won't foot the bill for a reneguing government, btw.

(*) the only option when I set it up 2 years ago :-{

Gist is they've given themselves powers to nationalise all the banks. They say they won't bail 'em out because then the country would go bankrupt too. They've appealed for help from abroad.

Good question.

FoFP

You're fortunate to still be able to access your account. I closed the account down last night and arranged a transfer of the full amount to my current account. The transaction, on the print-out I obtained, should have gone through today but I doubt that it has. The problem is that now my account is closed I cannot, of course, access it anymore! I'm in something of a limbo!

Ret.

This from the Daily Telegraph on-line financial pages:

Clare Francis, editor of the personal finance website moneysupermarket.com, said: "The good news for British customers is that even if the Icelandic scheme does not have enough money set aside, the rules mean that the British authorities will step in to cover all the shortfall."

I'm not at all sure that this is correct!

Ret.

Ret. wrote: ....

Indeed. I think I'd copy that piece of paper.

I'm surprised you can't log in though; no logical reason not to allow that in order to see the bank account status, plus past statements.

Sky News as I type - FSCS rep says one port of call, the FSCS, and FSCS will write a "clear and understandable" letter.

Damn - no interest :-( Deal with "balance at date of default" A year gone! Think in terms of months for repayment - too early to confirm.

"Not in default yet."