Icesave account details now incorrect.

Further to the above: I did just receive an automated e-mail response and so I rang them up. I was advised that they will re-instate the correct opening date but that it was unlikely that I would receive the interest anyway, as I had opted for annual interest and it had not been applied to the account prior to 8th October. She said that the FSCS had told them to advise customers that it was extremely unlikely that they would receive any interest that had not already been applied to the account prior to the 8th October. Bugger!!

Ret.

Again, there may be some ambiguity. You probably won't get interest beyond the 8th Oct, but for annual interest accounts 'Interest will be calculated on the cleared balance of your account on a *daily* basis and *paid* anually unless you have selected a monthly interest payment option'

Normally if you close the account during the year (or they close it) the interest is immediately paid up to the date of closure (you don't need to leave an empty account open until the annual interest date). If they actually mean they intend withholding interest earned but not paid, I think they'll have a problem arguing this. The actual value of your savings is the amount in the account plus interest on a daily basis to that point.

Toom

"The really frustrating thing about getting money back via the Financial Services Compensation Scheme (FSCS) is not being able to access it in the meantime and not earning any interest on the money from the day the organisation is declared in default up until the point when you're paid compensation (the exception is fixed-term accounts, which the FSCS says will be paid at the maturity date with the interest that would have been paid by the bank at maturity date)."

I hope that this info about fixed term accounts is correct as I have one which matures in early December, 'though I am sceptical.

The article goes on to say:

"The FSCS says it can take six months to process a claim for compensation. It's doing everything it can to make it quick for Icesave customers, but it's still going to be a lengthy bureaucratic process and it hasn't yet got the application forms out to savers."

I trust that things will move faster than that, but would not bet on it.

jv

Again, there may be some ambiguity. You probably won't get interest beyond the 8th Oct, but for annual interest accounts 'Interest will be calculated on the cleared balance of your account on a *daily* basis and *paid* anually unless you have selected a monthly interest payment option'

Normally if you close the account during the year (or they close it) the interest is immediately paid up to the date of closure (you don't need to leave an empty account open until the annual interest date). If they actually mean they intend withholding interest earned but not paid, I think they'll have a problem arguing this. The actual value of your savings is the amount in the account plus interest on a daily basis to that point.

Under normal circumstances I would agree with you - but these are not normal circumstances and I suspect that the FSCS may argue that we are lucky to be getting the capital back, let alone the interest!!

What's the capital of Iceland? A: £3.50

Ret.

What does an Icelandic stripper have in common with an Icelandic Bank?

They both have frozen assets.

There is indeed that element, which may come into it if what was given as a 'guarantee' cannot actually be honoured. But if there are to be shortfalls, there is the question of how these are shared. Someone with £30,000 invested for months may have earned interest at 8th Oct of £1000+, even if it isn't paid into the account. Someone else may have invested £30,000 two weeks before 8th Oct. Should they both get £30,000 back?

Toom