Icesave: five years since default

fscs Icesave: five years since default Financial Services Compensation Scheme Find out if your savings are protected at www.fscs.org.uk/protected/ £4.5bn paid out to 228,516 UK customers by FSCS Consumer confidence timeline INCREASED CONSUMER CONFIDENCE LOW CONSUMER CONFIDENCE northern rock Last FSCS/Icesave payment was made on 18 May 2012 The vast majority of people will now get their money back within seven First payments to Icesave savers in the UK by the Financial Services Compensation Scheme (FSCS) were made on 6 November 2008 days and 20 days for more complex Since Icesave's failure the The credit crunch starts to bite seeing queues outside Northern Rock protection rules for UK authorised banks, building cases. The payment process is free and automatic, so consumers do not societies and credit unions have been simplified to benefit consumers. Ice save formally declared in default on 8th October 2008 need to do anything Savers are protected up to £85,000, rather than the previous limit of £50,000. Pay-outs are no longer reduced by loans or mortgages with the same bank or building society Your questions answered How many people in the UK have re ceived What was the total UK pay-out on the Icesave failure? pay-outs after Icesave failed? The total amount paid out was FSCS paid out £4,510,734,969.76 228,516 customers, holding money in 296,465 accounts. Is FSCS looking to get any money back from the Icelandic banks and, if so, how much? What was the average UK pay-out amount? The average pay-out per account was FSCS has now recovered £15,215.53 £2,464,241,970.70 from Landsbanki's estate. 36,687 J78% The amount of payments less than £1,000. 230,529 of the 296,465 accounts received their money within a month of the first payment being made (by 5 December 2008). This equates to 78%. Case studies "When the bank did go bust I didn't panic too much, FSCS contacted me really quickly" Rebecca Joyce, Sutton “I had opened a savings account with Icesave after my husband and I got engaged. One day I tried logging in to transfer some money but it wouldn't let me enter my account. I had heard a lot about banks going under in 2008. I was told not to panic because FSCS could help in the event of a bank failure, so there was no need to try and withdraw all my money if my bank got into trouble. When the bank did go bust I didn't panic too much, FSCS contacted me really quickly. They sent me a claims form by email which was quick and easy to complete and return. I soon got all my money back which was a huge relief. "For many people, the collapse of Icesave was the moment at which the credit crunch became very real. The experience of Icesave customers proves that when people needed help, FSCS was there. Five years on, our systems are much improved so in the event of a future failure UK savers do not need to worry as FSCS will be there for them. However our research continues to show a lack of understanding and knowledge about the protection we provide. We want to reassure the vast majority of people that their money and savings are safe, and warn those who unwittingly put their money at risk." I would definitely recommend that people they check their bank is covered by FSCS at fscs.org.uk/protected/ and find out more about the financial protection they provide. I will always double check any future savings or investments of my own are FSCS protected." Mark Neale, Chief Executive of FSCS FSCS, which is independent and free to consumers, has helped more than 4.5 million people and paid out more than £26bn since 2001. The financial services industry funds the scheme through a compulsory levy. It covers deposits, insurance, investments and mortgage broking. Rebecca Joyce from Sutton Rebecca had turned to FSCS for help when she could no longer access her savings account after her bank went under. Deposit limits AJA E85,000 From 31 December 2010, the deposit compensation limit in the UK was increased to £85,000. www.fscs.org.uk/what-we-cover/leligibility-rules/compensation-limits/ Visit us online at www.fscs.org.uk Are you protected? www.fscs.org.uk/protected/ Follow us on twitter, @FSCSnews icesave