A new online savings provider called icesave.co.uk has entered the competitive UK savings market in a move that has been dubbed as "great news for savers".
Sean Gardner, the chief executive of financial comparison site MoneyExpert.com, said icesave.co.uk's entrance should be welcomed as it could potentially start a "savings price war".
The new company, which is under foreign ownership but is looking to make inroads into the profitable UK market, offers accounts including a 5.2 per cent cash account for investments of £250 or above.
"[This rate] is nearly double the average of 2.86 per cent," Mr Gardner noted. "This goes to show how all savers have a duty to review their accounts regularly."
Mr Gardner recommended anyone whose savings rate was below average to "kick it into touch" and to keep abreast of the latest accounts to "make your money work as hard as possible for you".
He also predicted a rise in interest rates from the Bank of England in the near future and said consumers would do well to wait until this happened as "many providers will pass this on to savers by hiking their rates even further".To view and compare various savings accounts, click here.
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