New update for Icesave savers from FSCS

Well that's a bit of good news then,

I always thought (now that the govt are buying large chunks of home banks) that the easiest method would be to transfer the accounts to a UK bank. If the accounts were reasonably competitive, many would not withdraw the funds straight away (if at all) which would reduce the immediate paperwork and financial burden to the govt.

TW

I have a 3 years bond there..... only been in 2 months!... any sign on what is happening with bonds?

I don't suppose they will be dealt with any differently to ISAs - you should be able to transfer it to another bond if you want, or just get your cash back to invest it where you will.

I'm putting mine with Bradford and Bingley now!!

Ret.

As far as I understand, they will pay you the money in 2y 10m time with interest.

The "systems operator" is Newcastle Building Society.

That's interesting - I just presumed that Icesave had set up its own team in the UK.

Ret.

I think that's exactly what Radio 4 "Moneybox" program said too.

They definitely did say that on Moneybox, but I wonder where the BBC got that from? No announcement has been made about the procedure to be followed for Icesave customers to get their money back, and no precedent has been set that they could have inferred that from.

If fixed deposit account customers are to get their money back with interest at the end of the term then the FSCS is going to be burdened with paying a fairly high rate of interest, assuming they pay at the same fixed rate that Icesave was using. I would have thought the government might have preferred to pay people off as soon as possible so they can wash their hands of the whole thing.

Chris

I would presume it's part of the rules for the FSCS scheme.

It gives them time to get the money together and spreads the payments. I could imagine that's quite valuable to the scheme.

In message , Ret. writes

FSCS are definitely now sending out the second email. When you receive it, it's time to log into your Icesave account and claim your savings.

The Icesave claim process appears to work (but see below). Although the money transfer to your nominated account will be by BACS, it could take

After completing the claim form and clicking 'Confirm' to submit it, after a few seconds I got a 'Cannot display this page' error message. All open windows showed this, and I found that I had been kicked all the way back to the login page. I had to repeat the whole process three times more before I actually did get the following confirmation saying that the claim had been accepted.

"Your claim has been accepted and is currently being processed."

So make sure that you do get this confirmation. If not, presumably your claim will not be processed, but you won't know it until you find that, after five days, nothing has happened.

Bitstring , from the wonderful person Ian Jackson said

So I wonder are they doing it alphabetically, but amount of claim (smallest first I bet, so they can say '90% of claims have been settled' without paying more than 10% of the loot), first in first out, or some other way like random?

In message , Ian Jackson writes

Ah! An emailed confirmation has also arrived.

My surname begins with "B", and I haven't had the second email yet, so its probably not being done alphabetically.

Chris

In message of Tue, 11 Nov 2008, Ian Jackson writes

Just received my email and have made the claim. All went smoothly and I didn't experience the problems which you did.

I expect the 5 days bit is to cover them. Normal BACS is 3 days inclusive which could be Friday, but if the transfer is not initiated until overnight it might take it to Saturday to arrive which means Monday, which is 5 days.

David

In message , David Floyd writes

I got my money today. The Milky Bars are on me!

Did you get any interest credited *from* 8/10/08 to the the date of transfer?

In message , brightside S9 writes

No.

It says "Irrespective of what type of Icesave account you hold, if you choose to participate in the electronic payment process for that account, then the payment amount you receive will be the principal sum deposited plus interest up to and including 7 October 2008".

Mustn't grumble, I suppose. It could be a lot worse.

For those who opt for fixed-term savings to mature: "If you hold an Icesave fixed rate savings account, you will be offered the option of payment of your deposit through the electronic payment process. Alternatively, you will be able to opt to receive the principal amount of your deposit, together with accrued interest up to the maturity date, at the end of the fixed term. If you choose this latter option, then the electronic process option is not available to you. However, you should still log on to the website and tick the appropriate box to confirm that this is your wish. At that time, we will be notified that you wish to wait until the end of the fixed term and we will then send you an application form to complete and return to the FSCS. This process will be slower, although we aim to complete this process so far as possible within 6 weeks of receipt of a completed application form, with payment following the maturity date of the account. You should also be aware that if you hold a fixed rate savings account that pays interest on a monthly, quarterly, or annual basis, and you decide to hold that account until maturity, you will not be paid any interest prior to maturity".

So, although you won't lose the 'missing interest' after 8 Oct, you will lose the interest between the date of maturity and when you get your money.