Icesave - Compensation
Although we have not recommended Icesave to any of our investors, it is likely many people have invested money thanks to the very attractive interest rates on offer. The Financial Services Compensation Scheme (FSCS) will be writing to savers in Icesave from the first week of November with details of how they are going to get your money back.
Icesave was declared as 'in default' three weeks ago and the Government guaranteed 100% of all deposits held by its retail savers. The FSCS is now setting up a system that means your money will be paid into the bank account that was linked to your Icesave account.
You do not need to do anything at this stage and your savings are safe. The FSCS will write to you with details about how to access your savings, ISAs or term accounts.
An automated payment process is expected to be in place from the first week of November and the first payments will start after that. The FSCS expects to be able to compensate most savers in November.
From the first week in November you will receive a letter from the FSCS explaining what is happening. This will shortly be followed by more details and instructions on how to complete a short electronic process to finish the transfer. The process will be phased to manage the flow of payments through the system and for security reasons.
The FSCS expects to be able to compensate most savers in November.
Source: FSA
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