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The Treasury has taken decisive action to ensure the stability of the UK financial system and to protect the interests of depositors and taxpayers. The Treasury is now taking steps to ensure that the interests of individual depositors are safeguarded and UK creditors of Landsbanki are treated fairly.

The Chancellor has put in place arrangements to ensure that all retail depositors in three Icelandic banks will receive their money in full:

• Landsbanki, including Icesave
• Heritable
• Kaupthing Singer and Friedlander, including Kaupthing Edge

Icesave

All retail depositors in Icesave will receive their money in full.

The Treasury is working urgently with the Icelandic authorities to clarify the position of Icesave. The Financial Services Compensation Scheme (FSCS) is putting in place practical arrangements to allow depositors to receive their money as quickly as possible.

Arrangements are being put in place to ensure that all ISA customers of Icesave will continue to benefit from the tax-free status of their accounts.

Heritable and Kaupthing

For Heritable, deposits in Heritable's retail deposit products have been transferred to ING Direct. These products include the 2,3,4 and 5 year fixed rate bonds, easy access, online saver, direct saver, 50 plus saver, and the 60, 90 and 120 day notice accounts. You can continue to access your account in the same way as you did previously.

For Kaupthing, all retail deposits under the Edge brand have been transferred to ING Direct. You can continue to access your account in the same way as you did previously.

You can find further details on the ING Direct website.

A small number of retail depositors have accounts with Kaupthing that are not part of the Edge brand, or accounts with Heritable that have not been transferred to ING Direct. These depositors will receive their money in full. They will need to apply to the Financial Services Compensation Scheme to receive their deposit. Further details can be found on the FSCS website or by phoning 020 7892 7300.

Further information

• Financial Services Compensation Scheme (FSCS) Opens new window