Q: What has happened?
A: The FSA said it expected the Icelandic authorities to put Landsbanki into insolvency proceedings after it went into receivership this morning.

Q: What UK brands does Landsbanki have?
A: Landsbanki offers online savings products through Icesave and a range of products including mortgages and savings through Heritable Bank. It is thought to have more than 300,000 UK customers.

Q: What is happening to Icesave and Heritable Bank?
A: Icesave has a message on its website telling consumers that it is not processing any deposits or any withdrawal requests on its internet accounts.

The company is not giving out any information beyond this.

Heritable Bank is also not allowing any new deposits or withdrawals.

Q: What happens to my money if insolvency proceedings are started?
A: If insolvency proceeding are started this would trigger payouts from depositor protection schemes.

Consumers' savings would be protected by up to £50,000 through a combination of the Icelandic deposit compensation scheme and the UK's Financial Services Compensation Scheme (FSCS).

The Icelandic scheme would payout the first 20,887 euro (£16,170) that people lost.

If for some reason it was unable to do this, it has a reciprocal agreement with other Nordic countries who would step in.

The UK scheme would then top-up savers' compensation to the £50,000 limit for sole accounts and £100,000 for joint ones.

The European Union today agreed to increase the compensation limit for EU countries to 50,000 euro (£38,900), but it is not yet clear if the higher limit would also include Iceland.

Q: How long would it take to get my money back?
A: It is difficult to say, but it is thought the Icelandic scheme would be able to pay out relatively quickly as it is partially pre-funded.

In the UK, the FSCS takes around four months to pay out, although it will pay compensation quicker if possible.

A consultation is currently under way looking at getting the scheme to return the bulk of consumers' money to them within a week.

Q: I have more than £50,000 invested, what will happen to the rest of my money?
A: Unfortunately, sums above this amount are not covered by the compensation schemes and you would have to join the queue with other creditors.

Q: I have several years' worth of ISA contributions saved with Icesave, would my money lose its tax-free status if the FSCS was called upon to step in?A: It is not clear what would happen to money saved in ISAs and the FSCS is currently trying to work out what the situation would be.

Q: If insolvency proceedings are started how do I go about reclaiming my money?A: You do not need to do anything initially. The FSCS will have the names of all savers with the group and will write to you with the relevant forms that will need to be completed.

The scheme has never made claims in conjunction with another country's scheme before, so it is currently unclear whether the FSCS would send out one form for consumers, or whether they would have to fill in separate forms to claim from the different schemes.

But the FSCS says it would hope to make the process as straightforward as possible.

Q: I have a mortgage with Heritable Bank, what will happen to that?
A: Heritable's mortgage book would be seen as an asset and sold on to another group.

However, if you also have savings with Heritable, you will not receive compensation for them. Instead they will be deducted from the value of your debt.

Q: I have money saved with Kaupthing Edge, is it safe?A: Kaupthing Edge is part of Iceland's biggest bank Kaupthing. The group is reassuring UK consumers that it is financially sound.
Its website contains a message from Kaupthing chairman Sigurdur Einarsson stressing that it had some of the strongest capital ratios in the European banking sector.

Unlike Landsbanki, Kaupthing Edge is registered as a UK bank and regulated by the FSA, meaning that in the unlikely event that there was a problem, consumers would receive all of their compensation from the FSCS.

Q: I am really worried about my savings generally, what should I do?
A: These are uncertain times in the banking sector and it is understandable that consumers are worried. However, the recent action taken by the Government suggests it is unlikely to allow a major British bank to fail. In the unlikely event that one does, people's money will be protected up to £50,000 for sole accounts and £100,000 for joint accounts per bank through the FSCS.

The best advice for people who are worried is to make sure they do not hold more than £50,000 with a single banking institution.

It is worth noting that this limit applied to banking groups and not individual brands. For example Halifax and Birmingham Midshires are part of the same banking group.

Some savings institutions, such as National Savings and Investments and Northern Rock, are also backed by Government guarantees.