Icelandic bank Icesave has launched a new fixed rate savings account paying what is surely a market-leading 7.01% on deposits.

Although described as a savings account, it’s really more of a bond, as a single deposit is made to open the account and this then can’t be added to or withdrawn from for the length of the term - from 6 months to 3 years.

Interest rates vary from 6.5% for the 3 year bond, to the highest of 7.01% for the 1 year account.

Interest is paid at maturity for bonds of 1 year or less, or annually for the longer term accounts, although monthly interest can be chosen at a slightly lower rate.

This entry was posted on Friday, May 2nd, 2008 at 5:25 pm and is filed under Savings. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.