Icesave

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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]

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[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

  1. ^ About Icesave. Icesave. Retrieved on 2008-03-30.
  2. ^ Savings Accounts. Icesave. Retrieved on 2008-03-30.
  3. ^ a b Faisal Islam. "How safe are your savings?", Channel 4 News, 2008-03-03. Retrieved on 2008-03-30. 
  4. ^ a b c Elizabeth Colman. "Time to bale out of Iceland?", The Times, 2008-02-10. Retrieved on 2008-03-30. 
  5. ^ Simon Watkins. "Iceland's banks top 'riskiness league'", thisismoney.co.uk, 2008-03-16. Retrieved on 2008-03-30. 

[edit] External links

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