£800m pledge to Iceland bank losers

My Account
Logout

Create an Evening Standard Account

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Welcome! Sign in here

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Forgot your password ?

Registration

* indicates fields that are mandatory

Email *

Password *

Confirm Password *

First name *

Surname *

Postcode *

Country *

Mobile phone number

Username *

Gender *

Year of birth *

When you sign up...

You will have access to all our online competitions, discounted offers and can post comments on our site.

You will also receive The Weekender newsletter sent every Thursday - it’s full of fantastic offers and ideas for the weekend. You can update your email preferences in your account page when you log in.

Other newsletters and emails

Homes & Property Newsletter - Yes I want to receive the weekly email with all the latest news on property in the capital

Occasionally we would also like to send you relevant emails detailing specific offers either from ourselves or carefully selected partners. If you would prefer not to receive these then please tick the appropriate boxes below. We will never pass on your details.

I do not want to receive additional offers and information from the Evening Standard

I do not want to receive additional offers and information sent by Evening Standard on behalf of carefully selected partners

Terms and Conditions

* I have read, understood and agree to be bound by the terms and conditions of Evening Standard

Registration

Mail Sent for Registration Confirmation.

A confirmation email has been sent. Please activate your account by clicking on the activation link sent in your mail box.

Chancellor Alistair Darling said the money was being transferred to the Financial Services Compensation Scheme (FSCS) to pay out to savers with deposits above the £50,000 limit covered by the scheme.

Around 230,000 Britons lost money in Icesave when its parent company Icelandic bank Landsbanki was put into receivership last month.

The FSCS is expected to begin paying compensation to savers next week, and it hopes to have paid the majority of claims by the end of this month.

It sent out emails to Icesave customers on Wednesday setting out how the compensation process will work.

These will be followed by a second email, sent out in batches, giving people instructions on how they can log on to their existing Icesave accounts and complete an electronic process enabling them to receive their money.

The cash will then be paid into an account of their choice within five days by electronic transfer.

The FSCS normally covers only the first £50,000 held in a savings account, rising to £100,000 for couples. But on October 8, Mr Darling pledged that no depositor in Icesave would lose any money.

Compensation for the first £50,000 lost by savers will be provided by the FSCS, with the Bank of England initially providing a loan facility, while the Government will top up payments above this limit.

The compensation process for Icesave customers has been speeded up. It usually takes up to four months for people to receive money after a financial institution collapses.