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Money Saving Expert said:...Kaupthing Edge* account pays 6.5% AER as long as you have over £1,000 in the account. It also has the best rate guarantee, promising to be at least 0.30% higher than the Bank of England base rate
until 1 February 2012, meaning it'll be a high, if not always top, payer until then.
Kaupthing is the UK offshoot of a big Icelandic bank, but is new to the UK market so there's no feedback on its smoothness or customer service yet. However, it is signed up to the Banking Code and crucially your first £35,000 is protected (see the Safe Savings? article) the same as all other UK banks....
This is Money said:...Moody's, the international credit-rating agency, recently described Iceland's banks as 'fragile', and said recently it was continuing its on-going review of their credit-worthiness.
Furthermore, research from investment bank Morgan Stanley reveals Kaupthing Edge's borrowing costs have increased 400% in the past year, leading analysts to conclude that the bank is 7.5 times more likely to default than any other European bank...
And let us not forget ...
Oh, right, here we go again...Financial Services Compensation Scheme said:Limitations of the Scheme
As a fund of last resort there are limits to what FSCS can do and to the amounts of compensation the Scheme can pay...
Have the banks taken up the propsals for funding FSCS? If not then bandying figures of £35k even £50k of consumer protection may be just smoke......The FSA's proposals for reviewing the funding of the FSCS will increase the financial capacity of FSCS. But it is still possible to conceive of a default (or a combination of defaults) so big as to be beyond FSCS's ability to pay compensation up to our limits. The FSA's proposals significantly reduce the probability of this happening, but they cannot completely eliminate it...
Subprime ... Little mention of the actual real estate and where the ownership now lies.
http://news.bbc.co.uk/1/hi/business/7070935.stm...Deutsche Bank seems to own large swathes of Cleveland...