# Krone Account with Investec



## princey boy (19 Sep 2011)

Hi All

Does anyone have any opinions on the Krone account being offered by Investec?


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## joe53 (21 Sep 2011)

I am looking at this myself. I have my pension savings currently on deposit with Nationwide UK (Ireland) in Euro at 3.5% but am worried about the possibility of Ireland exiting the Euro and a subsequent devaluation of my savings. The fact that the Krone is effectively pegged to the Euro under ERM seems to eliminate any currency risk if Ireland is still in Euroland at the end of the three year deposit term. If we are no longer in Euroland, I could withdraw the funds in Krone or convert to any other currency, including the new devalued 'punt'. I see also that deposits with Investec up to £65,000 are guaranteed under the UK Government scheme. 

All looks good so far but protection has a price - a 1.5% one off fee and a currency conversion 'cost' of up to 0.6% on entry plus a possible similar unspecified conversion cost on exit, to say nothing of the miserly interest rate (1.25% subject to DIRT) payable in the interim. 

Is there any Investec broker / intermediary out there willing to share the 1.5% fee ?. If I invest directly with Investec they retain the fee for themselves !.


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## petermac (26 Sep 2011)

*1.5%*

Im looking at this idea too. I rang them and was told that the 1.5% is for brokers not for private clients.


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## joe53 (26 Sep 2011)

petermac said:


> Im looking at this idea too. I rang them and was told that the 1.5% is for brokers not for private clients.


 
Hi Petermac,

I think you may have misunderstood. I rang and questioned them carefully about the fee because of the 'strange' wording used in the T&Cs. - "If the fee is not paid to an investment intermediary for distribution of the Account it remains within the Bank." I was clearly told that this means if there is no intermediary involved, the bank still charges the fee and keeps it for itself!.

Again - any brokers out there willing to do a deal on the fee ????

Also anybody have any thoughts on the general pros and cons of investing in the Krone?

Thanks
Joe


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## PolkaDot (27 Sep 2011)

Would this account be technically held in Ireland, Denmark or the UK? I ask this because in the event of a Irish default and the possibility of the government seizing all savings accounts, could they seize these accounts?


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## long_boy (28 Sep 2011)

joe53 said:


> Hi Petermac,
> 
> I think you may have misunderstood. I rang and questioned them carefully about the fee because of the 'strange' wording used in the T&Cs. - "If the fee is not paid to an investment intermediary for distribution of the Account it remains within the Bank." I was clearly told that this means if there is no intermediary involved, the bank still charges the fee and keeps it for itself!.
> 
> ...




Here's the response I just got: " The charge does not apply to you, this is a charge that is already built into the product."

This would suggest a better deal might be possible through a broker perhaps? This is very often the case with pension brokers, ie cheaper through a broker than direct


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## ommot (13 Oct 2011)

Tomorrow (14th Oct) is the last day for investing in this account. I am wondering is it a good idea, I would be grateful if anyone could advice, has anybody gone down this route. I canot understand how it has not been subscribed before the final day if it is such a good scheme. Can anyone help please?


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## Draigean (30 Nov 2011)

ommot said:


> Tomorrow (14th Oct) is the last day for investing in this account. I am wondering is it a good idea, I would be grateful if anyone could advice, has anybody gone down this route. I canot understand how it has not been subscribed before the final day if it is such a good scheme. Can anyone help please?



Issue 2 is currently available, 'til 7th December.


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