Kaupthing Bank - Kaupthing Edge

Kaupthing Edge

Kaupthing Edge was a pan-European retail deposit-taking brand. The purpose of the brand was to diversify liabilities on the Kaupthing balance sheet by currency, customer type (personal/retail) and country. Kaupthing Edge offered two deposit products: a savings account and a fixed-term deposit account. Both were straightforward high-interest products. In Belgium customers could choose a third product which was a current account. Kaupthing Edge savings and fixed-term deposit accounts were managed over the Internet with the support of telephony call centres.

Kaupthing Edge was available in eleven countries in Europe:

• Finland – available since October 2007; liabilities taken over by the Finnish Financial Supervision Authority on 9 October 2008
• Sweden – available since November 2007; accounts closed and all deposits repaid by 20 October 2008.
• Norway – available since January 2008; liabilities taken over by the Norwegian government on 12 October 2008
• Belgium – available since January 2008, all accounts were frozen on the 9th of October 2008. The amount above 20000€ came available after a takeover by Keytrade bank on 29 March 2009.
• United Kingdom – available since February 2008; accounts transferred to Dutch bank ING Direct on 8 October 2008
• Germany – available since March 2008; 30,000 depositors in Germany are still awaiting repayment of their deposits by the bank. Kaupthing Bank Liquidation Committee has announced that it has secured funds to repay German depositors. German depositors started to get their money back on the 22. of June and are to be paid in full.
• Luxembourg – available since April 2008
• Isle of Man – available since April 2008
• Switzerland – available since June 2008; in liquidation from 17 November 2008. Depositors partially repaid.
• Austria – available since September 2008; accounts frozen on 9 October, accounts transferred to other banks on 29 October

Kaupthing Edge accounts were protected within the EU by compulsory depositors protection schemes. These schemes are financed by a levy on the respective countries financial industry. In the case of the UK, the government would forward a loan to the scheme against future increased payments in case of a shortfall.

Kaupthing Edge is a word play on 'cutting edge'.