Bank tops table during "savings rate war"

HSBC is currently top of the tables for savings offers during what has been described as an "easy access saving rates war", it has been revealed.

Independent consumer services comparison site moneysupermarket.com claims that the so-called war was sparked by last month's decision by the Bank of England's monetary policy committee to raise interest rates by a quarter of a per cent.

This month, the committee chose to freeze the rate at 5.25 per cent.

According to moneysupermarket.com, there are currently five providers offering easy access saving accounts with interest rates starting at 5.6 per cent.

The current leading bank according to the comparison site, HSBC, has increased its annual equivalent rate to 5.75 per cent for its online saver account, while its childrens' savings accounts have a rate of 4.5 per cent.

"HSBC's move is fantastic news for savers and follows in close pursuit of last week's news that both the AA and Birmingham Midshires have increased rates on some easy access savings accounts to 5.6 per cent," commented Stuart Glendinning, managing director of moneysupermarket.com.

"Over the coming weeks we will see more providers entering the fray and alert savers should be able to bag themselves an excellent deal," he added.

Another company providing a high savings rate is ICICI Bank which offers 5.65 per cent.