Money in Icesave or other Icelandic Saving Accounts?

Discussion in 'Current Affairs, News and Analysis' started by geezer466, Oct 7, 2008.

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  1. Icesave Website

    Daily Mail Article

    Sharp Intake of Breath Time...............
  2. Heard on the news this morning that £50,000 is guarenteed in Ice Save - in line with the new regulations for the UK. However the first £16,000 would have to be claimed from the Icelandic Government.
  3. Thats how we understand it. All of our savings are in Icesave.
  4. I went to Iceland and withdrew all the pizzas from the freezer before they go bust!

    *sorry, had to be done!*
  5. Just out of interest and a genuine question - why are people from the UK saving money in Icelandic banks???? Is it some sort of tax haven??
  6. They offered unbeatable interest rate returns.

    Trouble is no one saw that with the increased level of return comes the increased level of risk..

    People need to have a full understanding of the word 'investment' before they put money in anything!!

    If they wanted super safe harbours for their money they they should have chosen National Savings or a building society.

    Wiki Definition Investment

    Many people will get burnt by this when with a little understanding of risk it could have been averted!!
  7. Fair enough. I don't understand this whole panic and seeing as my savings are below 10k with a UK bank then I assume i'm safe!?
  8. msr

    msr LE

    The situation is under review, but currently you get 100% of the first £2000 and 90% of the next £33,000

  9. msr

    msr LE

    Interestingly (no pun intended) Iceland has a GDP of £8bn and currently their banks have debts of £78bn.


  10. BoF,

    You are indeed safe, only if you had savings in excess of £50,000 on your own or £100,000 jointly would you be at any risk. In reality the only serious threat to cash deposits (as opposed to equity) investments are if there is a serious run on the main banks. This will only happen if everyone tries to withdraw all savings at once due to fear. It is this which caused the problem at Northern Rock (or was it's death knell at any rate).

    This is why some governments have guarenteed 100% of savings in order to instill confidence and prevent the run on the banks.

    The real problem is scaremongering as the banks at the present time are safe, the issue is that saying a bank will be unable to pay out peoples savings means that people will then attempt to withdraw all their savings at once - it is a self-fulfilling prophecy as no bank can ever pay out all savings at once (this is not how banks work).

    A run on the banks so severe as to see the major players all collapse would have dire effects on the economy.
  11. I believed that today the upper threshold has changed to £50,000
  12. MSR, I thought there was a new 50k gaurentee (100% thereof) from the Government as from yesterday. Also that was 50k per institution where you have investments so spreading the mopney to more than one bank in 50K blocks could guarentee the lot?

    You seem more up to speed on than me about this so I would appreciate your comments! Especially as my info comes from the Government soundbites!


  13. Cheers UA - you posted as I typed!
  14. msr

    msr LE

    It's breaking news!

    From today: The Financial Services Authority (FSA) has raised the limit to the amount of deposits that are guaranteed should a bank go bust to £50,000

    Payments will be made through the Financial Services Compensation Scheme (FSCS) and the FSA has said that it is to look into reforms that will allow compensation to be paid faster.

    The FSCS covers all UK banks, building societies and credit unions.

    Banks from outside Europe also contribute to the scheme and so their depositors are also protected.

    European banks may be covered by their own schemes and customers may be covered for only 20,000 euros (£15,600).

    From the FSCS website:

    As always: speak to an Independent Financial Advisor.