After my last post regarding protecting your cash assets we have seen today another finanical institution become nationalised.  This time it is Icelandic bank, Landsbanki.

Iceland’s banking minister confirmed that Landsbanki has gone into receivership and would be taken over by the Icelandic Financial Supervisory Authority (IFSA) following emergency banking legislation that was passed last night.

In a statement the regulator said: ‘Based on new legislation, the IFSA proceeds to take control of Landsbanki to ensure continued commercial bank operation in Iceland.

‘Domestic deposits are fully guaranteed, as declared by the government. Landsbanki’s domestic branches, call centres, cash machines and internet operations will be open for business as usual. The objective of the IFSA’s action is to guarantee a functioning domestic banking operation.’

However, around 300,000 British savers with £4.5 billion of funds are now unable to access their money.  They were drawn to the lender by high rates of return and could end up losing out.  Maybe ths is the time that “value” starts to recover some of the ground lost to “price”.

With all the turmoil surronding banks and their savers at the moment, finding a safe place for your cash deposits is becoming more of an art.  No, we are not recomending the “under the matress fund” for your money.  We haven’t suggested that since the Millenium Bug scare.

Currently up to £35,000 of you savings is protected by the Financial Services Compensation Scheme.  This is a bona fide scheme and we pay into it each year.  It is also the scheme which is helping bail out Bradford and Bingley so I guess our contribution next year may be a little higher. 

We have now received confirmation that all Post Office accounts are secure up to 100,000 Euros.  This is because the Post Office falls under the Irish Deposit Protection Scheme.

If you wish to know more about investing your cash in The Post Office, or any other institution offering a higher level of protection then please contact us now.

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