The Treasury has announced that individuals and retail depositors with funds in Icelandic banks will be given back all of their money.
Retail depositors, including individuals, in Icelandic banks are set to receive their money in full thanks to plans put into place by chancellor Alistair Darling, the Treasury has reported.
The Treasury ordered funds held, owed or controlled by Landsbanki - including Icesave products - to be frozen, although businesses can still access their accounts and deposit funds through Landsbanki's London branch.
Landsbanki's UK subsidiary, Heritable, is now in administration.
Deposits made into financial products run by Heritable - such as online saver, fixed rate bonds, direct saver, savings account for over-50s and 60, 90 and 120-day notice accounts - have now been transferred to ING Direct, as have retail deposits made under Kaupthing's Edge brand.
Financial Services Compensation Scheme (FSCS) chief executive Loretta Minghella asserted that the group has worked closely with authorities to establish a fast response after the Icelandic firms went into default.
"Our contribution means that people who had their accounts transferred will get immediate access to their accounts and their savings are protected," she said.
"The money we are contributing reflects the estimated gross compensation costs we would have had to pay out if we had paid compensation in the usual way."
