Treasury to pay out £800million to Icesavers

Grovelawn Financial News 07/11/2008

← Base rate cut by 1.5% | News For November 2008 | Property sales shrink but there are bargains to be had →

Savers to receive 100% of their money back

The Bank of England has agreed to lend the Financial Services Compensation Scheme £800 million to provide compensation to the 240,000 UK savers who lost their money during the collapse of the Icesave bank. Savers have been told they will receive all of their money back by the end of November.

The FSCS will email Icesave customers this week with details of how to reclaim their money. The money will be paid to savers’ linked bank accounts. A spokesman for the FSCS said “The process will only take a short while for depositors to complete and will enable them to see their money transferred to their established nominated accounts within five working days.

The money will be financed by the Treasury which will try to recover the millions through continuing negotiations with the Icelandic authorities if it fails to honour its obligations towards British savers.

Depositors have been prevented from withdrawing their money since Icesave’s parent bank Landsbanki collapsed in October and has since been nationalised.

← Base rate cut by 1.5% | News For November 2008 | Property sales shrink but there are bargains to be had →

The information contained within these news articles may include reference to taxation, legislation, regulation and other issues or concerns that may no longer apply.

Your property may be repossessed if you do not keep up repayments on your mortgage.

For more information on how we are paid for mortgages please click here.

Grovelawn Financial Services, 3b Restormel Industrial Estate, Liddicoat Road, Lostwithial PL22 0HD — T: 0845 458 2633