I had a considerable sum in fixed term bonds and on instant deposit with kaupthing edge. I was abroad on business when the news came that the banks had gone to the wall. I was seen to be visibly shaking and had to leave a conference (i was a presenter!) to try to find more information.

During the next few hours it wasn`t explicitly clear if fixed term deposits were covered under the financial protection scheme. I couldn't believe i was so stupid as to not check this point before investing in this kind of product. As it turns out they were covered but it took a long while for this information to come out.

The other concern was there was zero information about how the financial protection scheme was to be funded. On the Internet at the time were a number of analysts musing over the funding situation of these schemes. If a bank was to go to the wall would the scheme have enough cash to pay out? I understand when BCCI went bust it took some people 12 years to get all of their cash back.

I would say it was about 3 days after the collapse before i was convinced i would get my money back. As you know, the administration of the deposits was handed over to ING.

Credit to the government for "fixing" this situation so quickly. At least for once the Terrorism Act actually worked in my favor :)

Smala01