Darling Backs Icesave
Alistair Darling has just told the BBC that the government will fully compensate savers in Icesave.
The Chancellor, Alistair Darling, told the BBC at 8:30 this morning that the government will fully compensate savers in Icesave. He will give further details in a statement to the House of Commons at lunchtime.
Yesterday, many savers in Icesave were extremely concerned after the Icelandic owner of Icesave, Landsbanki, collapsed. It looked as though savers would have to claim compensation from an Icelandic scheme on any savings up to £16,100. Further compensation would come from the UK's Financial Services Compensation Scheme.
Darling's interview this morning has changed everything. The government will now compensate all savers in Icesave with no limit on the compensation. That's great news. The Chancellor didn't extend the guarantee to other banks, but we'll be listening carefully at lunchtime for more on that.
The Chancellor also revealed that he had spoken to Iceland's finance minister yesterday and been told that Iceland wouldn't compensate UK savers in Iceland. Darling was clearly angered by this answer.
We'll have more to say once Darling has made his statement to the House of Commons. We'll also cover the bailout scheme for the UK banks.
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Until this year I alwayspsent every penny I earnt, how stupid to I feel having lost money in ICESAVE & KE?[br/]Does anyone actually know when how we will get our money back?
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I've got a question. I had an ISA with Icesave already, but stupidly decided to open an easy access savings account (what a joke) the money was transferred by direct debit from my cahoot account. It came out of my account on 29th September. Does anyone think this would be covered by the Direct Debit guarantee?
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I have also discovered this evening that monies I had thought were safely transferred on Monday 6th by BACS from my Icesave Instant Access account ( the revised sum being shown on my Iceland account as hsaving been processed) have now reappeared in my Icesave account, never having reached my current a/c.[br/][br/]Are Icesave legally able to reverse a Direct Debit order after it has been issued and shown as processed on their accounts?[br/][br/]At least we can take some solace in the statement given in HM Treasury's statement issued at http://www.hm-treasury.gov.uk/press_101_08.htm where they say in item 3 >> 3. Arrangements are being put in place to ensure that all ISA customers of Icesave will continue to benefit from the tax-free status of their accounts. <<<<br />[br/]Good news indeed.[br/] I await with interest to see quite how the transfer of the Tax free wrapper is to be carried out. Presumably we will have to set up a recipient ISA account with a chosen bank in readiness for it to be transferred.
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13 October 2008