Icesave and the Icelandic Banks - What Happens Now?

Iceland’s biggest bank “Landsbanki” had a UK arm named “Icesave” which hit the news over the last year for offering great interest rates on savings of over 6%. So tempting was it in fact, that over 300,000 people took them up on it, including some local UK council’s and myself too. Even today, a UK hospital has announced it invested £7.5m in Icesave. A few weeks ago, Icesave were actually declared default in the UK - in a nutshell - kaputt.

So, what happens now?

Well, first thing is that the government has guaranteed everyones money in this bank so no one will have lost any of their cash and savings. Good news. Second thing is a question of timing and process and when the money will be returned and how. Currently we have to all wait until they announce a plan and timescale. Our feeling is that we will all receive a letter in the post announcing this in more detail in the coming month and hopefully should see funds returned before christmas.

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