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

Thanks access - excellent points and I'm glad it was all sorted out (relatively) smoothly. I know it wasn't quite as simple for some.

I'd like to hear more about the Spanish system - do you have any further details? How would the insurance system work? If people aren't too chuffed about paying an extra 50p for improved broadband, I cant imagine a PPI-type add-on is going to make much of a difference! You never know though... ;o)

I was listening to someone on TV the other day who was suggesting that western governments had their opportunity to change the banking system before they bailed out the large banks. They were talking largely about the bankers' bonuses, but perhaps that was also the opportunity to make wholesale changes to the compensation system. There's little doubt the FSA and FSCS was caught by surprise and a system that had never been tested struggled to cope, at least initially.

It would be great to hear from others who were involved in the collapse of the Icelandic banks - what do you think? I'm sure some of the Kaupthing Isle of Man and Landsbanki Guernsey depositors have some stories to tell...

How easy or difficult was it to get your savings back through the FSCS?

Icesave UK saver and online very smooth and efficient.

Who do you hold responsible for the financial crisis?

World but UK individual horror story due to Gordon Brown's light touch. I read that Spanish banks are far more strictly controlled and have to put away a certain amount each year for the bad times... and there we have it... er Santander, more conservative bylaw.

How did you cope with the stress and worry?

Philosophical but very pleased when Chancellor popped up on TV to say he'd save UK customers. Grateful for two seconds because he looked genuinely personally pleased that he was doing it. Of course, I don't think he had a choice because if he hadn't New Labour could have kissed goodbye to being in power for a very long time. Sickened that the Government can break the law - Terrorism Act - when it suits them. Wondered if all the money was in the UK as Icesave had repeatedly said. Laughed at the free media when The Sun allegedly did the Government/Alastair a favour with its daft war on Iceland front page.

Were you a saver with Icesave UK?

Yes

How would you prevent it from happening again? and,

Follow Spanish system but stricter controland swingeing fines if a UK reg bank put so much as a penny over the line.

if it did, what improvements would you make to the compensation system?

Difficult this one because I think £50,000 is a "World" figure roughly speaking. If there was an insurance system either added on to products so you bought with or without or customer direct to 100% the Government wouldn't allow it because who'd by relatively low yielding safe Government savings and bonds.

It’s fast approaching a full year since we saw the collapse of the Icelandic banks Kaupthing, Glitnir and Landsbanki and we’d like to hear your stories of how you were affected.

How easy or difficult was it to get your savings back through the FSCS? Who do you hold responsible for the financial crisis? How did you cope with the stress and worry?

Are you a depositor in Landsbanki Guernsey or Kaupthing IoM and still waiting for compensation? Were you a saver with Icesave UK? How smoothly did the transition to ING go?

How would you prevent it from happening again and, if it did, what improvements would you make to the compensation system?

We’d love to hear your thoughts and all about your experience…