Jump to content
House Price Crash Forum
Sign in to follow this  
Guest absolutezero

Icesave - Anything To Worry About?

Recommended Posts

Just logged in to my ICESAVE account and there's a great big banner saying:

OUR FINANCIAL STABILITY.

Evidently all the bad press about Icelandic banks has rattled them.

Click it and this comes up:

http://www.icesave.co.uk/financial-strength.html

Have a read. Does it all sound rosy or are they spinning it?

Nice; All institutions are having to do this - even ffs BullionVault just came on my thread to dispel any myths about capital security and that's custodianship of physical gold; you don't get any safer than that!

Share this post


Link to post
Share on other sites

"Unlike many institutions, we are strengthened by a very high ratio of customer deposits to loans - 70% of all loans are funded by customer deposits. This means that we are not heavily reliant on the wholesale capital markets for funding. To put this ratio in context, HBOS (Halifax/Bank of Scotland) has a ratio of 57.5%, Alliance & Leicester 56%, Bradford & Bingley 60% and Lloyds TSB 72.3%. Just before its crisis Northern Rock had a ratio of 25%."

This seems pretty compelling to me..... and shows how mis-managed Northern Rock was.

Share this post


Link to post
Share on other sites

"Icesave - Anything To Worry About?, They say not. Dissect please."

I'm not too worried, as I have now closed my Icesave account.

"we are strengthened by a very high ratio of customer deposits to loans - 70% of all loans are funded by customer deposits"

That only says where they get their funding from, it does not make any assurance as to its capital adequacy position or the quality of its loan book.

Just as well they aren't any more reliant on wholesale funding considering the crippling risk premium they are being hit with.

Share this post


Link to post
Share on other sites
Guest absolutezero
This seems pretty compelling to me..... and shows how mis-managed Northern Rock was.

Seems fairly solid and convincing.

The only bit that leapt out at me was the last paragraph saying words to the effect of "your money is guaranteed up to the £35000 limit - the same as all UK banks".

Then I thought of Northern Rock's guarantee.... :rolleyes:

Share this post


Link to post
Share on other sites

I've just taken over half a million out of Icesave.

They were fine and a pleasure to deal with. There are two arguments about how strong or how weak the Icelandic banking system is. I don't know which one I believe despite many hours of thought.

What I do know is the for 0.1% loss of interest I can put all my cash with Northern Rock for a 6% one year fix WITH easy penalty free access AND its 100% gauranteed (apologies to CGNAO.. I'm a big fan). Gordon guarantees 100% of ANY sized sum in NR. The 6% rate will be brilliant in a few months time when the BoE have slashed rates.

I'm happy to lose my 0.1% in exchange for 100% security and penalty free access. Its a no brainer.

ANDY

Share this post


Link to post
Share on other sites

the same with all banks (apart from NSandI and Norther Rock), keep below the 35k limit, you must be nuts to have more than that in a bank (and pay all the tax). Andy half a mill egh, thats alot of tax, you not considered going offshore?

Edited by moosetea

Share this post


Link to post
Share on other sites

I closed my Icesave account on Monday, 30k plus interest, maybe it was an over reaction, maybe not, personally I feel one must follow ones gut feeling, I had read loads about how vunerable the Icelantic banks are and feel very happy that I took the action I did.

It's my money, I make the choices, If they are now placing banners about stability on their site then obviously I wasn't the only one :ph34r:

Share this post


Link to post
Share on other sites

I don't think it makes a great deal of difference. They are hardly going to say - we are up to our necks in it -are they? even if they were.

The default swap rates posted around here somewhere tell a tale.

F

Share this post


Link to post
Share on other sites

If the whole crisis centred around Icesave then I'd be worried, but clearly the situation we are in is that all banks are potentially vunderable.

Nobody knows for sure which banks are the most at risk - generally the ones paying higher returns are the ones which are seen as the most risky.

I've got over 30k in Icesave and I'm happy to keep it in there.

Share this post


Link to post
Share on other sites
I've just taken over half a million out of Icesave.

They were fine and a pleasure to deal with. There are two arguments about how strong or how weak the Icelandic banking system is. I don't know which one I believe despite many hours of thought.

What I do know is the for 0.1% loss of interest I can put all my cash with Northern Rock for a 6% one year fix WITH easy penalty free access AND its 100% gauranteed (apologies to CGNAO.. I'm a big fan). Gordon guarantees 100% of ANY sized sum in NR. The 6% rate will be brilliant in a few months time when the BoE have slashed rates.

I'm happy to lose my 0.1% in exchange for 100% security and penalty free access. Its a no brainer.

ANDY

What he said. Ive done exactly the same. Icesave have always been fine, but as the recent moneyweek noted, for the amount of risk attached (fairly or not) to icelandic banks ATM it's not worth what they are paying. I can get 100% security with NR, for 0.5 less interest.

Share this post


Link to post
Share on other sites
I've just taken over half a million out of Icesave.

They were fine and a pleasure to deal with. There are two arguments about how strong or how weak the Icelandic banking system is. I don't know which one I believe despite many hours of thought.

What I do know is the for 0.1% loss of interest I can put all my cash with Northern Rock for a 6% one year fix WITH easy penalty free access AND its 100% gauranteed (apologies to CGNAO.. I'm a big fan). Gordon guarantees 100% of ANY sized sum in NR. The 6% rate will be brilliant in a few months time when the BoE have slashed rates.

I'm happy to lose my 0.1% in exchange for 100% security and penalty free access. Its a no brainer.

ANDY

Didnt Gordon Guarantee "No more boom to bust" ?

Does that Guarantee extend to another party if Gordon is not in office ?

Share this post


Link to post
Share on other sites
What he said. Ive done exactly the same. Icesave have always been fine, but as the recent moneyweek noted, for the amount of risk attached (fairly or not) to icelandic banks ATM it's not worth what they are paying. I can get 100% security with NR, for 0.5 less interest.

Thinking along similar lines to the above posters I have moved most of the 6K we had in Icesave out today.

I can get the same return by putting half in a 30 day a/c and slicing 3k off the mortgage.

(Yes, I know in theory I should pay the mortgage off completely, but as an IT contractor specialising in Financial Services, not Banking thank goodness,:blink: with a family to support, I need a substantial emergency fund).

Landsbanki need to understand the need for a risk premium on their rates - I might be tempted to move some back then, especially if the level of tension in banking circles diminishes over the next month or so.

Share this post


Link to post
Share on other sites

depositers need not worry, i cant see this gov letting any bank fail (which is stupid)

but if they did, imo there is no chance they will let depositers take the hit.

Share this post


Link to post
Share on other sites
depositers need not worry, i cant see this gov letting any bank fail (which is stupid)

but if they did, imo there is no chance they will let depositers take the hit.

I don't share your confidence. NuLab saved Northern Rock because: 1. It was the first bank to fail, 2. It was a British institution with thousands of UK employees, 3. It was based in a Labour heartland, 4. There were queues at the branches on the TV/radio

I cannot believe that NuLab will feel obliged to help out an Icelandic internet-only bank to the same extent. Icesave/Lansbanki and Kaupthing investors will be relying on the 300,000 Icelandic population to foot the bill!

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 294 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.