Challenger bank trumps competitors’ deals by upping fixed savings rates
The Swedish challenger bank today increased the interest rate paid on its three-year term Fixed Saver Account from 1.63% to 1.75% AER.
It now sits at the top of the best buy table, knocking Masthaven’s 1.67% AER offering to second place.
The bank, founded by the family behind the Ikea brand, has also increased the rate on its four-year fixed saver account from 1.80% AER to 1.95% AER.
Moneyfacts data reveals that Ikano now offers the same rate for its four-year fixed account as other providers offer for their five-year fixed deals.
Ikano accounts can be opened online and you can save between £1,000 and £1m. Savings are protected by the Swedish Deposit Insurance Scheme, up to £75,000, rather than the UK Financial Services Compensation Scheme (FSCS).
Interest rates on the other Ikano Bank savings products are unchanged.
See YourMoney.com’s Should I entrust foreign banks with my savings? for more information about foreign FSCS-equivalent deposit protection schemes.