Icelanders Offer 6.5% Online for UK Savers ; HIGHLY RATED; KEVIN MOUNTFORD WELCOMES THE OVERSEAS SAVINGS BANKS

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Byline: JO THORNHILL

ICELANDIC-owned Kaupthing Edge, an online savings provider, has becomethe latest foreign bank to launch an account aimed at British savers.

It follows several new names into the savings market, including IcelandicIcesave, Nigerian-owned FirstSave, ICICI of India and Dutch-owned ING Direct.

Kaupthings instant-access savings account pays 6.5 per cent gross. It alsooffers a six-month fixed-rate bond at 6.8 per cent gross and a 12-monthfixed-rate bond at 6.86 per cent gross.

Savers must first open the instant-access account with a minimum of [pounds sterling]1,000before they can take advantage of Kaupthings fixed rates. The minimuminvestment in a fixed-rate bond is [pounds sterling]5,000.

Kevin Mountford, head of savings at price comparison site moneysupermarket.com,says: Kaupthings launch is good news for savers, particularly at a time whenthe Bank of England looks set to cut rates again.

The savings landscape has changed considerably in recent years, with newoverseas players such as ING Direct and Icesave changing the contents of thebest-buy tables. …