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Foreign banks take the number one spot for savings again

September 1, 2008 by admin  
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Over recent months many consumers may have been thinking about trying to put a little money aside wherever and whenever possible in case of emergencies, especially given the ongoing tight credit conditions that are making it difficult for many to get finance when they need it. However, with the high cost of living and hikes up bills most consumers are looking for a way to make their money work as hard as possible in terms of rewards.

For the past couple of years a number of foreign banks have stormed the UK markets with table topping designed to try and entice customers to deposit their money and enjoy high rates of interest, which many people have done. However, over recent months there has been a shift in the tide – with UK banks struggling to get finance on the wholesale money markets due to the global credit crunch, many have become increasingly reliant on deposits to shore up their finances, and because of this many started to offer higher interest rates on savings, quickly putting UK banks back at the top of the best buy tables.

However, according to a recent report the trend has not lasted long, as the foreign banks have quickly regained their position at the top of the tables, coming back with bigger and better rates to try and increase their savings customer base. Amongst the foreign banks that have recently increased their rates in order to take back the top positions on the best buy tables are Kaupthing Edge and ICICI, both of which have enjoyed top positions on the best buy tables over the .

One industry official stated: ‘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.’

She went on to state: ‘In the past providers would usually only offer such competitive rates for customers with linked products, such as the last ICICI offering when savers had to also invest in the easy access savings account to get the high rate on the fixed-rate bond. It will be interesting to see how UK providers react to a foreign provider yet again raising the bar in the British savings market.’

So, whilst some consumers may have been considering popping their savings into a UK bank or building society in order to get the best return, these latest figures suggest that it could be well worth checking out the deals and rates on offer from the newer players to the UK market, which could make a considerable difference to the returns that many people enjoy on their hard earned cash.

Tags: savers, ICICI offering, customers, recent, savings accounts, past year, United Kingdom

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