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Savings are adding up for Icesave customers
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Icesave Ignite Savings War
Writes Dan Drage dan.drage@consumerchoices.co.uk
Icelandic savings specialists Icesave have blown the savings market wide open with their new fixed rate account.
The Icesave (www.icesave.co.uk) fixed rate account, launched last week, pays 7.01% interest for a year or 6.79% to those who take the interest monthly.
It’s the first time in over six months that fixed rate savings have broken the 7% mark as rates had fallen off from last summer's high.
Heritable bank, a member of the same group as Icesave, also launched a competitive savings account paying 6.5%.
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"The Icesave fixed rate account, launched last week, pays 7.01% interest for a year or 6.79% to those who take the interest monthly"
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Rachel Thrussell of money search engine Moneyfacts had the following to say on the subject of competitive savings accounts:
‘I did say a few weeks ago that I didn't think we'd see rates as high as 7 per cent, but even with the base rate as low as 5 per cent, institutions are looking at other ways to fund their business and are keen to increase retail deposits’
She continues:
‘We have noticed in particular that the Icelandic banks seem to have become quite aggressive in the market.’
Fixed rate accounts generally offer the highest savings rates, the downside being the lack of access to your money. Savers are not allowed access to their money during the term of a given account, the penalty being a loss of three months interest payments.
Chris Eagle, Commercial Manager at Credit Choices, is an Icesave fan:
‘Deals this competitive don’t manifest themselves daily. If you’ve been looking for a savings account that pays well, then you need to act today. It’s been six months since fixed rate savings accounts were last offered with a 7 per cent plus interest rate, so don’t miss out this time’
He continues:
‘Icesave has consistently been top of our best buy tables, and with its new top rate of 7.01% you could earn over £70 a year by depositing £1000.’
Find out more about the Icesave savings account
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