Savers with Iceland banks wonder where their money is

Some savers with the collapsed Icelandic banks have had cause for concern recently after realising that withdrawals that they made using same day CHAPS seem to have disappeared into the abyss. Some consumers made withdrawals after hearing that the banks were on the verge of collapse, and found that whilst their Icelandic bank accounts registered at zero the money did not appear in the recipient accounts.

Some customers were told that the problem was with the CHAPS same day transfer system, but an official from APACS, the payment clearing agency, said: ‘Contrary to what these banks have been telling their customers, the CHAPS system has not ground to a halt.’

She added: ‘The plumbing bit in the middle, the transfer system, is working as normal – it’s the institutions that have closed the door to their vaults. That’s the problem. When a bank stops normal trading, no money is going to leave that institution. That’s not great news for anyone worrying over whether their money has disappeared but this has happened to a great number of people. But the money should eventually reappear.’

Whilst consumers have been concerned about the whereabouts of their money some have said that they are very grateful that the UK government has provided them with a 100% guarantee on their savings when the Icelandic government refused to honour its compensation scheme.