Icesave

Icesave was an online savings brand operated by the Icelandic bank Landsbanki. It offered high-interest savings accounts to customers primarily in the United Kingdom and the Netherlands, using a simplified online platform. When Landsbanki collapsed in October 2008 during Iceland's financial crisis, Icesave's liabilities to foreign depositors became a major international issue.

The UK and Netherlands governments guaranteed all eligible Icesave deposits held by their residents and advanced loans to cover insured deposits. Iceland faced a looming liability to repay these funds and introduced domestic legislation to guarantee the Icesave creditors, which required funding measures by the state.

In 2010, Iceland held a national referendum on the proposed terms for repaying the UK and Dutch claimants. The voters rejected the terms, creating a political deadlock and prolonging negotiations with the two creditor governments.

Over the following years, talks continued and a settlement was reached outlining a repayment plan to reimburse the UK and the Netherlands while preserving Iceland's financial stability. The arrangements were implemented gradually, reflecting a combination of Icelandic state funding and international financial support arrangements.

The Icesave episode had lasting effects on Iceland's public finances and contributed to broader debates on cross-border banking, deposit insurance, and the reform of European and Icelandic financial regulation. It also highlighted the risks of online savings brands operating in multiple jurisdictions during a bank's collapse.