Icesave
From Wikipedia, the free encyclopedia
Icesave is an online personal savings account provider in the United Kingdom launched in October 2006. As of May 2008, the company is also operating in The Netherlands. It is a trade name of Landsbanki, one of the three main banks in Iceland.[1] Icesave currently offers three types of account: an 'easy access' account, an Individual Savings Account (ISA) and a set of fixed rate bonds.[2]
Contents |
[edit] Interest rates vs. risk
From its launch in late 2006 to early 2008, Icesave collected some £6 billion of UK savings deposits following a period in which it consistently offered market-leading interest rates.[3] Following the decision by credit-rating agency Moody's to describe the entire Icelandic banking sector as "fragile" in January 2008,[4] and coupled with the credit default swap spreads for Icelandic banks rising to unusually-high levels,[5] several articles appeared in the UK media questioning the safety of deposits with Icesave (and Kaupthing Bank who had also recently launched online savings in the UK).[3][4]
Landsbanki dismissed the prospect of savers losing their deposits, saying "Icesave is hugely liquid",[4] and pointing to the fact that retail deposits are covered jointly by the Icelandic Deposit Guarantees and Investor-Compensation Scheme and the UK's Financial Services Compensation Scheme (to a maximum of £35 000 per depositor).
[edit] See also
[edit] References
- ^ About Icesave. Icesave. Retrieved on 2008-03-30.
- ^ Savings Accounts. Icesave. Retrieved on 2008-03-30.
- ^ a b Faisal Islam. "How safe are your savings?", Channel 4 News, 2008-03-03. Retrieved on 2008-03-30.
- ^ a b c Elizabeth Colman. "Time to bale out of Iceland?", The Times, 2008-02-10. Retrieved on 2008-03-30.
- ^ Simon Watkins. "Iceland's banks top 'riskiness league'", thisismoney.co.uk, 2008-03-16. Retrieved on 2008-03-30.
