Foreign savings accounts back at the top of the best buys

Over the past couple of years consumers in the UK have seen a number of foreign banks enter the UK market, offering impressive interest rates on savings accounts and catapulting themselves to the top of the best buy tables. With some of these accounts offering very high rates on interest even on instant access account many consumers have switched their savings in order to make their money work harder for them.

However, in the past few months UK banks have had to make a change and have had to increase the interest rates paid on savings in order to entice customers back. This is because their lending operations have been severely affected by the difficulties experienced in securing funds on the wholesale money markets, which is a situation that stemmed from the global credit crunch, and in order to shore up finances UK banks have tried to increase deposit levels from savers. As a result of this over the past few months UK savings accounts have managed to topple the foreign accounts from the top of the best buy tables.

According to recent report the situation has now reversed again, and once more the foreign accounts are taking over the top spots on the best buy tables by increasing their savings interest rates to more than the rates that the UK banks are offering. Kaupthing Edge and ICICI are amongst the foreign banks that have increased their rates on savings products.

One industry official said: ‘ICICI have really put the cat amongst the pigeons by offering this fantastic rate for savers who are willing to lock up their cash for a year – especially as it is a standalone offering. It’s especially good news for savers who will have recently been disappointed with the withdrawal of the top two highest rates less than two weeks ago.

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