The second-largest bank in India launched in the UK in 2003 and offers a range of products, including its highinterest savings account HiSAVE.

Ratings agency Fitch gives the bank one of the poorest credit ratings -- just above the " subinvestment grade," which is what

Bradford & Bingley was downgraded to before it had to be bailed out by the Government. But ICICI's rating has been stable for much of this year.

Foreign-owned banks from outside the European Economic Area that offer savings accounts to UK consumers, including ICICI, must have full registration with the Financial Services Compensation Scheme.

As such, UK savers with ICICI have 100 per cent of their deposits covered up to £50,000, or £100,000 for a joint account.

Launched in the UK in July last year, it is owned by FBN UK, an arm of the First Bank of Nigeria, which has operated in London for six years and is well known in the City for its corporate and trade finance banking services. It has about 50,000 UK savers and savaged rates on Friday (see opposite). Like ICICI, it has a poor credit rating from independent assessors.

As with ICICI, given that it is a non-EU bank, it is signed up to the FSCS. So, all UK savers with FirstSave have 100 per cent of the first £50,000 of savings protected.

FEARS OF AN EXPECTANT MOTHER...

Software developer Rosie Chandler has £2,500 in a cash Isa with Icesave. She was not worried about the safety of her cash at the start of last week, but in light of Icesave's decision to suspend all transactions, Rosie has become concerned.

Rosie, 28, who lives with her IT worker husband, David, 45, and their son Thomas, 3, in Sandhurst, Berkshire, is expecting the couple's second child in January.

She was relying on using some of her cash Isa savings to supplement the household income during her maternity leave. But now, along with hundreds of thousands of others, she is not sure when she might get back her money. It is also not clear what interest will be paid.

"It is reassuring that the Government has said no one will lose their money," says Rosie, "but it is setting quite a precedent.

"I'm not sure they would be able to cover all savers in the event another bank goes bust.

"I just hope we won't have to wait too long to get back our money and that it won't be a hassle to claim. It will be annoying to lose months worth of interest on my savings."

PASSPORTING: WHERE TO CLAIM

Banks with HQs in the European Economic Area (EEA) that sell to savers here can choose to belong to the compensation scheme in their own country. This is known as passporting.

If such a bank goes bust, UK savers must first apply to the scheme in the bank's country of origin. Compensation limits vary, however, so check with your savings provider.

For example, the Irish depositors' compensation scheme offers 100 per cent of all retail savings deposits. The Dutch scheme, to which ING Direct subscribes, provides protection up to £80,000.

A concern is how quickly European schemes would pay out. EU law states that cash should be repaid within three months of a company or bank being declared in default, but no scheme has been tested on a large scale.

"Passporting is good in theory, but as we saw with Icesave, it's been found wanting in practice," says David Keo at money website fool.co.uk.

Foreign-owned banks based outside the EEA, such as India's ICICI and Nigeria's FBN Bank, which owns FirstSave, must sign up to the Financial Services Compensation Scheme.

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