The UK branch of Icelandic bank, Landsbanki, which includes Icesave, has been declared in default in the UK.

So in the interests of consumer protection, we have triggered the Financial Services Compensation Scheme (FSCS) to safeguard retail customer savings held in Icesave.

In addition, the Chancellor of the Exchequer has put in place arrangements to ensure that no retail depositor will lose any money as a result of the closure of Icesave.

The FSCS will provide further information for customers shortly, to set out what will happen next and how they can make a claim.

Icesave also intends to provide more information to customers as soon as possible.

Is my money with Icesave safe?

Yes. The Chancellor of the Exchequer has put in place arrangements to ensure that no retail depositor will lose any money as a result of the closure of Icesave.

Will I get all of it back or just the first £50,000?

No retail depositor will lose any money as a result of the closure of Icesave.

When will I get it back?

As quickly as possible. HM Treasury, the FSA and FSCS are working closely together on the practical arrangements for paying back customers and the FSCS website will be updated with further information on Friday.

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