Protection for investors in a collapsed bank

[k-j-g]

Please can anyone clarify if money held in a cash savings account or cash ISA with a bank that has gone bust (i.e. Icesave) still earns interest whilst the accounts are effectively frozen ?

[factor-fiction]

Good question- i haven't seen this covered. But I guess the priority under any compensation scheme will be to get your capital back.

[buildersmate]

It is indeed a good question, to which the answer will be - no.
The bank has collapsed so won't be paying.
You seriously believe old fluffy eyebrows is going to pay interest to depositors?

[peg131]

sorry buildersmate, but the answer is yes to the return ,and not so sure as to interest paid after the bank defaulted