moneysupermarket.com: Icesave fixed rate bond paying 7.01%

Commenting on the launch of the new Fixed Rate Bond at 7.01 per cent from Icesave, Kevin Mountford, head of savings at moneysupermarket.com, said: "It has been widely reported that banks are keen to focus on fixed rate products in order to lock in cash. Oversees providers have benefited from a low cost base allowing them to develop a strong presence in the easy access savings market, and of late have also been prominent in the six and twelve month bond market as well.

"That said, the fact we are back to the seven per cent mark again is a significant milestone considering last time this was achieved the bank base rate was much higher.

"Clearly Icesave, and no doubt other foreign brands, will continue to throw down the gauntlet to more traditional brands."