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Iceland says no to Icesave repayment deal

Referendum decides against repaying UK and Holland


The Icelandic people have voted against the latest deal to repay the UK and the Netherlands following the collapse of the country’s banking system in 2008. 

The UK and Dutch governments have threatened court action against Iceland in a bid to reclaim money lost following the failure of Landsbanki in 2008. The collapse meant that the UK and Dutch governments stepped in to bail out £3.5billion of lost savings across 400,000 depositors. Landsbanki’s Icesave brand offered savers market-leading interest rates before its collapse.

The UK and Dutch governments insist that Iceland is obliged to repay this money, however Icelandic opposition to the deal argues that their taxpayers shouldn’t have to pay for the mistakes of a private company.

Are my savings secure?

If your savings are held in an institution authorised by the Financial Services Authority, you will be covered up to £85,000 of your deposit under the Financial Services Compensation Scheme (FSCS) in the event the company fails. Overseas institutions often have similar arrangements with their governments – so before depositing your money with banks abroad, check in advance to see what safeguards are in place. 

To find out more visit our guide to savings protection. Visit our current Best Rate savings account reviews to find the right savings product for you – all accounts in our Best rate tables are fully covered up to the FSCS limits.

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