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Tuesday 7 October 2008 10.49pm
Unfortunately the recent credit crunch has had a severe direct effect on us, we had an easy access isa with icesave which has now gone into receivership and the icelandic govt are not guaranteeing the british their it a question of just wait or see or is there something we can do to actively retrieve our money from icesave? does any banker/lawyer have some professional advice what to do i am so worried i am feeling ill! I know i should have seen it coming and all that but just now some practical advice is more helpful. many thanks
Wednesday 8 October 2008 9.51am
My field of banking is not in retail, but you can start your search for information here:

Financial Services Compensation Scheme (FSCS) details can be found here:

Up to 35k is generally guaranteed, but it depends on the type of product and the institution you are dealing with. One of my colleagues thinks half of the money should be guaranteed by the Icelandic authorities, the other half by the FCSC in the UK, buty is not absolutely sure.

Beware that it can take 12 - 18 months for any payment to come through, and you will not receive any interest over the funds during that period.

Good luck. PM me if you need more information and I'll see what I can do
Wednesday 8 October 2008 10.01am

This should give you some comfort, I think.

...if you press it, they will come.
Wednesday 8 October 2008 11.01am
For the future, if the interest rate looks too good to be true, it probably is...
Wednesday 8 October 2008 11.03am
I have money in Icesave too. So long at you are under the 50k limit, I don't think there is any problem with getting your money back -- I feel confident I haven't lost mine. The problem is (i) the fact that the 50k guarantee is made up partly by the Icelandic FS guarantee (about 16k) and the rest by the FSA; it may take some time for the two authorities to work out who is going to pay out for what; (ii) the hassle and paperwork will be annoying; and (iii) you will likely lose all your interest.

There is nothing you can actively do at the moment as the back not 'bust' just yet. Just hold tight and try not to feel ill about it.
Wednesday 8 October 2008 11.08am
Ivanhoe wrote:

This should give you some comfort, I think.

If you read this, I don't think the 50k stuff is relevant in this case.

...if you press it, they will come.
Wednesday 8 October 2008 11.13am
The Mapmaker wrote:
For the future, if the interest rate looks too good to be true, it probably is...

There are plenty of banks who pay uncompetitive interest rates who are teetering on the brink so I don't think this is really relevant.

If Icesave were paying our 7% on their deposit accounts the assumption is that they are making in excess of 7% on their lending/investment business. The fact they didn't, and screwed up, should not affect their customers. I fully accept that you take a risk when investing, but a savings account is a secure vehicle for cash. If the consumer feels they cannot put their money in a bank for fear of losing it, we are done for.
Wednesday 8 October 2008 12.28pm
Magic beans.

If Bank A is managing to make a better rate on its investment activities than Bank B>>>Bank Z, then I WOULD be very cautious about what Bank A is doing to be able to make those returns.

As we've all seen, it's relatively quick and easy for one bank to follow the same practises as all the other banks (Northern Rock didn't invent the business model that sent them down. It copied it from other banks that were making more return on investment than it was.)

So, if Bank A is making more cash on its investment activities over anything other than a short period (whilst the others catch up by copying), then either the other banks aren't being run to maximise profit (unlikely), or Bank A's appetite for risk is higher than the others, in which case you'd be wary of putting your money in Bank A.

Which means that Mapmaker's comment is correct, imho.

...if you press it, they will come.
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