The government today unconditionally guaranteed British savers funds in the failed bank Icesave.
Which? has more information on protecting your savings.
Following uncertainty about the Icelandic banking system’s ability to pay compensation to savers, the Chancellor Alistair Darling said: ‘Because this is a branch of a foreign bank the first call would be on the Icelandic compensation scheme which, as far as I can see, hasn’t got any money in it.
‘The British scheme would top that up to £50,000, but people over and above that would lose out…I have decided in these exceptional circumstances that we will stand behind those depositors so they get their money back.’
This was further confirmed in a statement to the House of Commons at lunchtime today.
A Treasury press release also confirmed the position on Isas and said: ‘Arrangements are being put in place to ensure that all ISA customers of Icesave will continue to benefit from the tax-free status of their accounts.’
In a further dramatic development today, Dutch Bank ING Direct has acquired more than £3 billion worth of British deposits from Icelandic online saving providers Kaupthing Edge and Heritable Bank.
Further announcements are expected shortly. We will keep you posted.