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Customers in bust bank Icesave should start to get their money back next week. The Financial Services Compensation Scheme emailed account holders in the online Icelandic bank as the first stage of the restitution process this week. A second email will follow to ensure payments start next week in a phased process. This will tell depositors how to log on to existing accounts to complete a short electronic form. Savers have been guaranteed 100% of savings in Landsbanki, Icesave's bankrupt parent.
Once the email is returned, their money will transfer to their "Icesave bank account" - the UK clearing bank nominated to take in Icesave withdrawals - in a BACS transfer within five working days. Any customers who have not yet received the first email should contact FSCS on 0845 7300 131.
UK Icesave customers can also use a paper-based application process, although this will take longer.
The Treasury has also announced special arrangements so Icesave cash Isa customers can transfer them without losing tax freedom. "Technically, compensation should have pushed them outside the Isa environment," says Peter Shipp at Isa group Tisa.
"We persuaded the government to change the rules giving Icesave Isa customers until next April 5 to re-invest."
But the news is still grim for savers in Landsbanki Guernsey. It also went bust when the Icelandic parent went into administration but savers are not covered by the UK compensation plan - and Guernsey has no rescue scheme.
Over 2,000 depositors share £120m - many originally saved with Cheshire Building Society's offshore arm but were transferred in 2006. Now the best they can hope for is 30p in the pound. And no one knows when they will get even that.
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