6.5% - at a price !

[empip]

...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....

...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 ...

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...

Oh, right, here we go again...

...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...

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...

Subprime ... Little mention of the actual real estate and where the ownership now lies.

...Deutsche Bank seems to own large swathes of Cleveland...

http://news.bbc.co.uk/1/hi/business/7070935.stm

 

[stargazer]

Concerned about the precarious state of the financial institutions, empip withdraws all his savings from the Bradford & Bingley, and looks for a hiding place at home

 

[ellal]

...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....

They desperately need foreign currency...

We have an account in Icelandic Krona which pays 16% interest ...we used if for our frequent trips there.

We were going to transfer it back, as the 'outlaws' have moved over here and we don't go back so often..

I say were - monday: 120kr to the pound
Today: 165kr to the pound...and forcast to keep plummeting!

As for the 'outlaws'....their pension value here (paid from there) has fallen 30% in two days!

Welcome to the credit crunch!

 

[JohnD]

I bet they wish they were in the Euro.

 

[ellal]

I bet they wish they were in the Euro.

They were told that to be in the euro they would have to be in the EU....

And then the spanish would get all their fish!!...