Last week I got my second email from the FSCS stating that I could log on to my Icesave account and reclaim the money I had tied up in the failed Icelandic bank, Landsbanki. Today, the day before we depart for our Spain, 2008 adventure (watch this space), my funds magically appeared in my current bank account. So, that’s it, 100% recovered with many thanks to the government (how often does one hear that?) and the FSCS.
I have to say that, in my opinion, this situation has been very well organized and executed by the FSCS. I realize that we, personally, were in the fortunate position of not relying on any interest from that chunk of our cash that was frozen in Iceland and that others might have been hurting through having to wait for the wheels of bureaucracy to spin, but spin they did and very smoothly, too. We received one email explaining what the online process would be – when prompted, just sign on to your existing online account using normal security and initiate compensation – followed by a second email a week or so later – OK, go for it. I must write to them with congratulations and express our gratitude.
Given the way that interest rates are dropping like a stone, anyone who was relying on the interest from such cash will now be hurting anyway looking for a decent return on their recovered money. The other conundrum, of course, is finding enough relatively safe places to park it in this newly uncertain economic mess. Reading the ratings of the various banking organizations one sees recurring references to "… toxic American investments …" being used as a basis for how safe or not any individual organization is seen to be. I just love this use of the word "toxic". It’s pretty accurate given a situation that has led to the poisoning of the world’s economy.
Spain’s going to be considerably more expensive this time given the appalling exchange rate of the Pound Sterling against the Euro (£1 = €1.13) but we’re looking forward to it anyway. Hell, we can’t take it with us. 😉