Kaupthing Edge remains at top of best buy tables

 

April 26, 2008

Following the base rate cut announced by the Bank of England earlier this week, one bank has announced that it will be leaving its savings interest rate on hold, so savers will not have to see the return on their savings reduced as a result of the rate cut. Icelandic bank, Kaupthing Edge, has been topping the best buy tables since it stormed into the UK market last year, and following the base rate cut in February it announced that it would be keeping its savings interest rate at 6.5%.

The bank has now announced that the interest rate will still remain at 6.5% even after the most recent cut earlier this week, and this means that the pressure will be on for other financial institutions to keep their savings rates competitive. The decision to keep the rate on hold means that the bank will continue to top the best buy tables, and is likely to attract a lot of attention from savers that want to get the best return on their savings.

After the Monetary Policy Committee meeting and the announcement of a rate cut from the Bank of England, one official from Kaupthing Edge said: ‘Today’s decision to lower the base rate is likely to cause a flurry of rate adjustments within the savings market. Savers should grab this opportunity and review their savings to ensure that they are still getting a competitive deal on their money.’

There has been some bad press about the bank over recent months, with revelations that the bank’s borrowing costs have gone up by 400% in the last year and that it is over seven times more likely to default than any other European bank. However, consumers should bear in mind the government’s 100% guarantee on the first £35,000 worth of savings.

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