UK savers investing in Icesave and other foreign banks could face delays receiving compensation if one of them suddenly ran out of cash.
Savers who use banks solely regulated by UK authorities will receive £35,000 from the Financial Services Compensation Scheme (FSCS) if their bank defaults.
However, many of the 100,000 British savers who have placed £5 billion in Icesave savings accounts may not realise that they are not entitled to exactly the same guarantee.
Icesave, the internet-only bank owned by Landsbanki, the Icelandic bank, is only partly regulated by the UK's Financial Services Authority (FSA). The Icelandic authorities are ultimately responsible for the bank and must pay out compensation to distressed savers before they can claim from the FSCS.
Under the Icelandic Deposit Guarantees and Investor Compensation Scheme, the first 20,887 (£15,635) of savers' deposits is guaranteed.
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The rest of any £35,000 claim would be made up by the FSCS, into which Icesave contributes.
However, the FSCS website also carries this warning: "The home state scheme has lead responsibility for claims, and must pay the first part of any compensation.
"This might cause some delays in resolving claims, as FSCS may have to depend on information from the home state schemes before paying any 'top up' compensation."
The Bank of Ireland, Anglo Irish Bank, TD Waterhouse, the Dutch bank ING and Bank of Cyprus also top up their home compensation schemes in this way.