Icelandic bank, Kaupthing Edge, has announced that its savings interest rate is to remain unchanged yet again following this week’s Bank of England base rate cut. After the February rate cut the bank announced that it was leaving its savings account interest rate at 6.5%, putting at the top of the best buy tables. Officials from Kaupthing have now announced that the rate will remain at 6.5% even though the Bank of England has now cut the base rate to 5%.
The decision to keep its savings interest rate on hold will mean that Kaupthing put pressure on other financial institutions with regards to their savings interest rates. Kaupthing Edge is one of the newcomers to the UK market, and is looking to build on savings deposits and customers by offering this impressive rate of interest, which is likely to result in a lot of interest from savers that want to get the best return on their savings.
Following the Bank of England announcement with regards to the cut in the base rate an official from Kaupthing Edge stated: ‘Today’s decision to lower the base rate is likely to cause a flurry of rate adjustments within the savings market, which does include some interest bearin current accounts. 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 controversy lately over the stability of the bank after reports that its borrowing costs had increased by 400% in a year, and that it was over seven times more likely to default than any other European bank. However, industry officials have reminded consumers that they have a 100% guarantee on their savings up to £35,000.