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Icesave Credit Rating Downgraded 3 Notches

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http://www.housepricecrash.co.uk/newsblog/...otches-4104.php

ICICI Bank Limited Baa2

(Landsbanki Islands hf) ICESAVE Aaa :(

ICICI Bank comes out the worst with Baa2. :o

Is this worrying, with some on here holding extremely large deposits in these institutions.

Will they default?

You have to say with all the cheap money and subprime loans somebody looks like going this time, especially as it's now an international market. For the last two years (since I've seen an asset value crash with all the resultant bad debts as extremely likely) I've stuck to the £33k per lender limit, prior to this I didn't bother as it's obviously easier just having one account.

Anybody who doesn't know these rules if an FSA authorised deposit taker defaults then you get back all of your first £2k and 90% of your next £31k.

Everything above that - bye bye.

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I've always been sceptical with ICICI, but Icesave doesnt really worry me, and I've got a moderate sum in there (however not over the £33k FSA limit).

Icesave infact seem extremely good and I would recommend them to anyone.

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http://www.housepricecrash.co.uk/newsblog/...otches-4104.php

ICICI Bank Limited Baa2

(Landsbanki Islands hf) ICESAVE Aaa :(

ICICI Bank comes out the worst with Baa2. :o

Is this worrying, with some on here holding extremely large deposits in these institutions.

Will they default?

Hello Panda , i hope you hav'nt lumped all that 300k house money with Icesave :blink: , you might recall it was me who first put Icesave on here back last October , i too put a fair bit in Icesave , but 2/3 months ago i brought both mine and mrs. account to under 30k each as i think they may struggle should there be a credit crunch etc , reasons are ............

Icesave own the UK bank Heritable , have a look at what this small bank offer , the've got sub prime written all over it , they specialise in BTL :o .

Icesave are the biggest bank in Iceland , wowwwwww without checking i know theres only about 200,000 people living on that volcanic rock .

It's best to spread it all around imo even if you do lose a few fractions of % , at the end of this month there will be others paying almost 6% . Have a look at NSI index linked certs , 2 months ago i maxed out on these also using my kids names in trust as well , this month they were paying over 6% TAX FREE , and you only need to hold for 12 months to get all the growth , i am sure these will beat Icesave over the long term and there much safer .

ICICI , ain't got a penny with this outfit .

If i were you Panda , just FISH around for the best accounts and spread it all around ;)

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Hello Panda , i hope you hav'nt lumped all that 300k house money with Icesave :blink: , you might recall it was me who first put Icesave on here back last October , i too put a fair bit in Icesave

Nope ICEShark, oopps sorry :rolleyes: GREYShark, not working for them anymore, i do remember you spreading the word regarding what a great institution ICESave are and how you would recommend their account. The wind changed or redundancy looming? Now are you working for NSI or taking a break from marketing these savings accounts?

"i hope you hav'nt lumped all that 300k house money with ICESave"

If only :( , that would be nice, :huh: we are not all as lucky as you to have that kind of sum knocking around? :blink:

Edited by Panda

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Nope ICEShark, oopps sorry :rolleyes: GREYShark, not working for them anymore, i do remember you spreading the word regarding what a great institution ICESave are and how you would recommend their account. The wind changed or redundancy looming? Now are you working for NSI or taking a break from marketing these savings accounts?

"i hope you hav'nt lumped all that 300k house money with ICESave"

If only :( , that would be nice, :huh: we are not all as lucky as you to have that kind of sum knocking around? :blink:

Childish post there Panda was only trying to help , yes Icesave is good but we can all change our minds , it's a bit like buying a share , things change something else comes along and it's time to sell . And don't take me for a sap regarding your LARGE cash fund , your worried about your dough in Icesave thats why you started this thread and your always using the third person like " someone " or " some on here " when it is yourself your refering to , it's very funny to read though :lol:

This was a topic of yours from March i remember it well , it was really funny as you whinged your way through it over the loss of your 200 quid that you could not claim back any more :lol:

A Hidden Tax Rise For Savers, Sold to Rent, claming tax back on savings, your £200 worse off

Arn't you lucky ..........

I understand there are very few people (LUCKY) on here in this situation but, it is a case of a hidden increase in taxation

Lucky again ..................

But, my original post was regarding someone who may be very lucky enough to have circa £350k to £400k in the bank earning interest, they will be £200.00 worse off through this new taxation. I know it is a small amount with a regard to their stash, but still a new hidden tax, which many would not notice?

350k to 400k .........................loan us a tenner :lol: .

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And don't take me for a sap

Touched a raw nerve me old son? ;)

"And don't take me for a sap!" You described yourself not me? :blink:

You have put alot of effort in there. Topics regarding LARGE amounts seem to get you all RUFFLED and excited, now your not so ICE cool are you! :lol:

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Touched a raw nerve me old son? ;)

"And don't take me for a sap!" You described yourself not me? :blink:

You have put alot of effort in there. Topics regarding LARGE amounts seem to get you all RUFFLED and excited, now your not so ICE cool are you! :lol:

Not much effort required there took all of 4/5 minutes if you know where to look , as for touching a raw nerve , errrrrrrrrrr..............get real , more like i touched one on you , it's your thread , i just find you very amusing always using the term " someone " or " some on here "when your so obviously refering to YOURSELF i see you didn't deny the quotes i put up anyway , i just hope you havn't put that 350k+ in Icesave seeing that your wetting yourself over there credit rating , i suggested NSI to you or spread it all around and just get childish abuse in return :rolleyes: .

Anyway Mr Sap that previous topic of yours in which you got yourself into a frenzied fish state with others........

A Hidden Tax Rise For Savers, Sold to Rent, claming tax back on savings, your £200 worse off
did you find out if the personal allowance been cut to approx £1,000 or will it still around £1,200 ?

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Not much effort required there took all of 4/5 minutes ;) OkyDoky old lad?

errrrrrrrrrr..............get real :lol:

i see you didn't deny the quotes i put up anyway :rolleyes: Why Bite, you are only guessing like you guess about anyone on here, you know nothing about anyone on here or better still you are making assumptions based on your financial situation. So i will guess about you and I will leave the bait on the hook for the old man with the grey hair who see's himself as a bit of a money shark, probably an ex double glazing salesman who is trying to justify his position? Oh and don't put yourself down, thinking of yourself as a sap? :(

i just hope you havn't put that 350k+ in Icesave seeing that your wetting yourself over there credit rating. :huh: If only :( ICE Shark, i certainly would not be wasting my time on here, taking the p!ss out of you. ;) Thats what i do not understand, you with you LARGE stash, well thats what you tell all of us anyway, maybe there's a bit of bully in there somewhere; and at your age, get out enjoy it. You must stop trying to justify your position as a sell to saver old boy? :P

You cannot take it with you, and your missus will only spend it? :(

Edited by Panda

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Hi,

I recently opened an account with Icesave having read about it on these boards. I was quite happy with it until I just read this latest thread. I wonder if someone could be kind enough to explain to me in straight forward terms why there is a risk to having a large sum in there? I just don't understand about the rating going down three notches? :unsure: It looks like I need to start researching all over again ...... {sigh}.

I recently got out of UK housing market and am considering alternatives - in the meantime need somewhere safe for the dosh!

Thanks.

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Hi Splat. ICEsave is probably safe, and I suspect this rating change is just the guys in the city with vested interests trying to discredit them, but I wouldn't keep the proceeds of a house sale in there. As Frank has said above, the rules are that you'll get back all of your first £2k and 90% of your next £31k that you have in your account. Any balance above that isn't guaranteed in any way. Still, if you're patient enough to open up enough accounts to hold £31,000 in each then in the event of ICEsave going bust, you'd only lose a maximum of 10% of your money.

Take a look at the News Blog post below, it's got some more info and good discussion about what the rating decrease means, why it happened and some suggestions on where to keep your savings.

http://www.housepricecrash.co.uk/newsblog/...otches-4104.php

Cheers.

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Hi and thanks for your reply.

This is the bit I don't understand;

Here is a comparison for Moody's Long term credit rating

HBOS plc Aa2

Halifax plc Aa2

Bank of Scotland Aa2

HSBC Bank plc Aa1

The Royal Bank of Scotland Aaa

National Westminster Bank Plc Aaa

Ulster Bank Ltd Aa2

ICICI Bank Limited Baa2

(Landsbanki Islands hf) ICESAVE Aaa

It looks like HBOS/Halifax/BOS are the safest

ICICI Bank comes out the worst with Baa2.

I hadn't heard of these ratings and they are about as clear as mud!!

It seems that my only option is to open a whole load of seperate accounts which sounds like a right fag, unless anyone out there knows any better? :huh:

I certainly need to do something as I no longer feel comfortable with leaving it all with Icesave.

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Hi and thanks for your reply.

This is the bit I don't understand;

Here is a comparison for Moody's Long term credit rating

HBOS plc Aa2

Halifax plc Aa2

Bank of Scotland Aa2

HSBC Bank plc Aa1

The Royal Bank of Scotland Aaa

National Westminster Bank Plc Aaa

Ulster Bank Ltd Aa2

ICICI Bank Limited Baa2

(Landsbanki Islands hf) ICESAVE Aaa

It looks like HBOS/Halifax/BOS are the safest

ICICI Bank comes out the worst with Baa2.

I hadn't heard of these ratings and they are about as clear as mud!!

It seems that my only option is to open a whole load of seperate accounts which sounds like a right fag, unless anyone out there knows any better? :huh:

I certainly need to do something as I no longer feel comfortable with leaving it all with Icesave.

The business of having several separate savings accounts to stay within FSA compensation limits is just a pain in the butt and makes life very complicated. It wouldnt be so bad if the limits actually went up in line with inflation.

Personally I cant be bothered. I think that the last bank that went bust was BCCI back in the 1980s.

Edited by penbat1

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These ratings are in favour of the big mortgage lenders. Funny that!!!!

Edited by OzzMosiz

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The business of having several separate savings accounts to stay within FSA compensation limits is just a pain in the butt and makes life very complicated. It wouldnt be so bad if the limits actually went up in line with inflation.

Personally I cant be bothered. I think that the last bank that went bust was BCCI back in the 1980s.

Up to you of course. As I said two years ago I didn't bother but now do. Just need a separate file for them. Bit of a pain but better than losing money.

I knew somebody who lost a lot on BCCI, he may actually have lost it all as they went bust when his money was being transferred from the Monaco branch so it didn't look like he was covered for anything.

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Thanks for that link Durch, interesting reading.

Right, I've delved into this rating business a bit further.

From http://www.moodysasia.com/mdcsPage.aspx?te...ns&mdcsId=9

Moody's Ratings:

Aaa – “gilt edged”

Aa1, Aa2, Aa3 – high-grade

A1, A2, A3 – upper-medium grade

Baa1, Baa2, Baa3 – medium grade

Speculative Grade

Ba1, Ba2, Ba3 – speculative elements

B1, B2, B3 – lack characteristics of a desirable investment

Caa1, Caa2, Caa3 – bonds of poor standing

Ca – highly speculative

C – lowest rating, extremely poor prospects of attaining any real investment standing

AAA is the best rating.

Now the bits we're interested in. Icesave has been lowered from AAA (gilt edged - i.e. safety equivalent to a government bond) down to Aa3 which is three notches lower, but only one grade lower, still 'high grade'. From Durch's link above, on average only 0.02% of companies have ever defaulted within a year of being rated AA. So, on average that's one in five thousand companies. For me that's a pretty rock-solid level of risk.

How about ICICI? With a baa2 the chances of it defaulting are 'only' 1.21% - but of course that's orders of magnitude riskier than ICEsave.

So in conclusion - personally I'd feel very comfortable holding a STR fund in ICEsave (I should be so lucky). Much less so in ICICI. But if you want to be as close to certainty that your money will be safe - put it into an AAA rated mega bank like RBS.

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