Savers can enjoy a higher rate with Icelandic bank

An Icelandic bank that has only recently broken into the UK market is offering a headline rate of interest on its savings account, and has announced that despite the recent interest rate cut it will be keeping the rate on hold, enabling many savers to enjoy a higher return on their savings.

Kaupthing Edge is offering savers 6.5%, and whilst many financial institutions are looking to cut the rates on savings following the interest rate cut the Icelandic banks is giving savers the chance to enjoy impressive returns on their savings.

The Indian bank ICICI is also offering a slightly lower rate of interest on its HiSave Account, which stands at 6.41%. Some financial institutions are still to reveal whether interest rates on savings will be cut.

Following the announcement that Kaupthing Edge was keeping rates on hold, one industry official said:

‘The direct providers – currently dominated by overseas players – tend to operate with lower costs and can reflect this in their rate. Given that they still need to build credibility in the market, they are likely to play fair where rate reductions are concerned. I believe the likes of ICICI, Icesave and Kaupthing, will still be at the top of the table post today.’