Kaupthing savers weigh up ING's six-month bonus offer

Commenting on ING's new offers to its ex-Kaupthing savings customers, Kevin Mountford, head of banking at moneysupermarket.com, said: "The majority of personal savers with failed Icelandic banks survived a big scare last year. Dutch giant ING came to the rescue of Kaupthing customers but, after enjoying some market-leading rates with Kaupthing, these savers are coming back to earth with a bump.

"Ex-Kaupthing savers now have two offers on the table from ING. They can either move to a two per cent offering with a guarantee the rate will be at least 0.3 per cent above the base rate until 2012 - or they can give up the guarantee but receive a higher rate of four per cent (which includes a two per cent bonus) for six months, after which they'll earn ING's standard rate without a rate promise.

"While many experts sniff at the use of bonuses as a way of attracting savers and headlines, four per cent is not bad at all in today's market, even with a bonus. And it's likely that bonus accounts will actually provide a further stimulus to the savings market by encouraging savers to change accounts more regularly, thereby increasing competition, at least in the short-term.

"It's vital savers remain vigilant as the odds are stacked against them and they'll need to keep their wits about them to keep their savings working hard. If you opt for an account that includes a bonus, be sure to make a note of when the bonus ends so you can look again at your options at the end of the period."