Icesave UK depositors saved by the UK Government

UK savers who have savings with failed Icelandic bank Icesave are being helped by the UK Government as it lends £800 million to the Financial Services Compensation Scheme. The Chancellor Alistair Darling is living up to his promise that no individual UK Saver will lose money due to the Icelandic bank failing.

The loan from the Government will help towards the cost of compensating for Icesave UK depositors who lost their money.

Although it’s been reported that the Financial Service Compensation Scheme (FSCS) may take up to 5 weeks to pay back the money to some savers.

Icesave which is owned by Landsbanki was frozen and swept up by the Icelandic government at the start of October 2008. This resulted in 230,000 customers not being able to access their money.

The FSCS are sending out emails this week explaining to the banks UK customers how the refund system works. Batches of refunds will be given out over the next three to four weeks and the cash will arrive five days later.

Source: BBCThe Road to El Dorado trailer