Page last updated at 11:01 GMT, Wednesday, 31 December 2008

Icesave web claim deadline passes

Icesave website
Customers can still make paper applications to reclaim their savings

The deadline has passed for online applications by UK residents reclaiming savings from collapsed bank Icesave.

Tuesday was the final opportunity for customers eligible to use the electronic compensation payment system to do so.

The Financial Services Compensation Scheme (FSCS) had earlier said 7,000 savers could still claim and receive their cash within five working days.

Paper applications were accepted but this way could take up to six weeks.


Icesave - the internet arm of Icelandic bank Landsbanki - collapsed in October, but no UK savers should lose any money after the UK government stepped in to guarantee their funds.

The FSCS has said that more than 90% of customers were able to use the electronic compensation system which automatically transfers funds into another bank account.

But thousands of others are using applications by post instead.

They include people with a total of 716m in fixed rate savings accounts who have opted to leave money in their accounts to accumulate more interest.

Others have been unable to access Icesave's website, had a negative balance in one of their accounts or the FSCS were unaware of up-to-date contact details.

The main reason for the online process being inaccessible to some was that they did not have a linked account into which funds could be automatically transferred.

Instead they were told they would be sent a cheque after completing a paper application form.

The compensation body believes that some savers with only small amounts of money in their Icesave accounts have not bothered to claim at all.

The FSCS has now paid out 3.54bn in compensation, with a total of 191,219 savers having claimed through the electronic process, and another 10,711 cheques having been sent through the post.

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