So far, Iceland has claimed that it has the funds to compensate the UK’s 300,000 savers who have deposits with its Icesave accounts, so all customers will have to sit tight for the time being. Compensation must be provided within three months under EU rules.
However, if this turns out to be incorrect, the Financial Services Compensation Scheme (FSCS) has said that it will not pay back the full £50,000 if the Icelandic system finds it is unable to pay back any individual’s funds owed up to its guarantee of 20,000 EUR (£16,000). So if you have £50,000 saved with Icesave and the Icelandic system cannot meet its obligation of £16,000 owed, then the UK system will only provide the ‘topped-up’ additional sum of £34,000.
Tags: compensation, Financial Services Compensation Scheme, FSCS, Icesave, savers, savings guarantee