300,000 British savers left waiting
More than 300,000 Britons who have savings with the Icelandic bank Icesave have been told that they may have to wait weeks or even months to get their hands on their money, after the bank's parent, Landsbanki, went into receivership.
Icesave, which has offered some of the most competitive savings rates in the UK over the past year, stopped British savers from withdrawing money from their accounts yesterday while the receivers tried to engineer a rescue of the bank. Its sister bank, Heritable, which is also owned by Landsbanki, was also put into administration.
Although Landsbanki stressed that the bank was not yet insolvent – and could yet be rescued – British regulators were telling savers to prepare for the worst, advising them that they will probably have to reclaim their money via the UK's Financial Services Compensation Scheme (FSCS).
Although £50,000 of customers' savings will be guaranteed, the first €20,887 (£16,170) of this will be paid out by the Icelandic compensation scheme, with the remainder being covered by the FSCS.
However, the FSCS said that it would be handling all claims so all UK depositors would only have to fill out one form.
Unfortunately, there remains no guarantee on how quickly savers would be reunited with their money. The FSCS said it would endeavour to make payments as quickly as possible, but was unable to say how long this might be. Insiders have admitted that without a government loan to the compensation scheme, it could be weeks or months before savers can access their money. Loretta Minghella, the chief executive of the FSCS, said: "We are pulling out all the stops to help those who have deposits with Icesave. We know that they will be feeling anxious and want to reassure them that we will do everything we can to help them get the help they are entitled to as quickly as possible.
"What we have agreed in principle with the Icelandic scheme is that we should try to use a single application form for both schemes that will spare consumers the need to make separate claims to both compensation schemes. We expect to send application forms to all of Icesave's eligible depositors within the next week.
"If possible, this will be a form which will enable people to make claims on either the Icelandic scheme or both schemes according to the size of their claim."
- 1 Cyclist who knocked down three-year-old girl says his life has been 'destroyed'
- 2 A politically correct lefty goes to see Top Gear live – you'll probably believe what happened next
- 3 Young Preston fan has play-off hero Jermaine Beckford's shirt stolen from him at Wembley - which then appears for sale on Gumtree
- 4 Isis burns woman alive for refusing to engage in 'extreme' sex act, UN says
- 5 Puerto Rico, island of lost dreams: People are leaving the debt-hit territory in droves as near neighbour Cuba's star rises
As a white man, I'm surprised more women aren't tweeting the hashtag #KillAllWhiteMen
Scotland may have to leave the EU even if it votes to stay in, David Cameron confirms
The day that Britain resigned as a global power
SNP fury as HS2 finds 'no business case' for taking fast train service to Scotland
EU referendum: David Cameron's rules are a 'democratic disgrace', says French-born Scottish politician set to be denied a vote
A nation of inequality: How the UK is failing to feed its most vulnerable people
iJobs Money & Business
£40-50K: Guru Careers: We are seeking an experienced Software / C# Developer w...
£45,000 - £55,000: Neil Pavier: Are you looking for your next opportunity for ...
£45,000 - £55,000: Sheridan Maine: Are you a newly qualified ACA/ACCA/ACMA qua...
£50,000 - £60,000: Laura Norton: Are you looking for an opportunity within a w...