Which Bank has the highest interest rate in the UK?

UK: High Interest Internet Savings accounts: ICICI or Icesave - any views on these banks?

• I've heard that ICICI (a big Indian Bank) had some system problems when they set up in the UK but are now OK. Icesave (run by an Icelandic Bank) pays a slightly better interest rate, but their website is reported to be slow because of their current popularity. Any experiences (good or bad) of these banks?

• Answer:

  ICICI bank has a financial strength rating of C- from Moody's and a long-term foreign currency credit rating of Baa2 from Moody's and BB+ from Standard & Poor's. Essentially from an investor point of view, any debt it issues is rated junk by these two ratings agencies. For a UK bank, the FSCS provides some security (100% on first £2,000 and 90% on next £33,000). Personally I don't think the extra interest is worth it, but it is up to you. Icesave is rated A2 by Moody's. This acceptable I think. According to its website the Icelandic deposit guarantee is worth slightly more when combined with the UK scheme.