Savers who lost money in Iceland's Icesave collapse can expect to be emailed details on how to claim compensation from the British authorities.

The Financial Services Compensation Scheme (FSCS) hopes the first compensation payments will be made next week, with the majority of claims paid out by the end of the month.

Around 230,000 people with their cash frozen will receive and email setting out how the compensation system will work.

A second email will outline how to log onto an existing account and complete an electronic process to retrieve the money.

People will receive their savings through an electronic transfer within five working days of completing the electronic process on their Icesave account, with the money paid into an account they nominate.

The FSCS normally only pays out the first £50,000 that people have lost, rising to £100,000 for joint accounts, but Icesave savers will be compensated in full after the Government said it would guarantee UK savers' money in the bank which was part of Landsbanki.

Any Icesave customers who have not received their first email from the FSCS by the close of business on Friday should contact the scheme on 0845 7300 131.

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