The accelerated FSCS process will repay over 200,000 UK savers with deposits in the collapsed Icelandic bank. The FSCS expects to launch the electronic process in early November, with repayments made into depositors’ linked bank account.
The FSCS will write to depositors to spell out how the process will work. It will then contact customers again with instructions on how to complete the necessary online forms to finish the transfer. Icesave customers do not need to take any further action at this stage. The government has also confirmed that customers with Icesave cash Isas will not lose the tax-free status of these deposits.
Loretta Minghella, Chief Executive of the FSCS, said: ‘We recognise that Icesave’s customers have been anxious about their savings. We would like to thank them for their patience. We have been working hard to establish a way of compensating retail depositors of Icesave without the need for a paper-based application process. We will be contacting retail depositors to tell them how the transfer process will work and when they can access the system. The automated payment process is expected to be in place in ten days time and the first payments are scheduled to start in the second week of November. We expect to offer compensation to the vast majority of retail depositors in November.’
For more information about safe savings, see our online guide on protecting your savings.