Confusion relating to financial compensation schemes

Commenting on the confusion relating to financial compensation schemes, Tim Newhouse, from price comparison site moneysupermarket.com, said: "No wonder there is uncertainty and a lack of confidence relating to all things financial at the moment.

"The governments of Ireland and Iceland both boldly talked about 100 per cent guarantees, yet they meant wildly different things.

"In the case of deposits with Irish banks, these are 100 per cent protected as its Government stated. It does what is says on the tin.

"Iceland though is not fully protecting UK savers, despite its announcement yesterday. The key, if you have deposits with an Icelandic bank, is not to have more than £50,000 with it - or else you are overexposed."