It's not just the Premiership that has reaped the benefits of a foreign invasion in recent years - the same can also be said of the UK savings market where the traditional big-names have been surpassed on rate by newcomers from as far away as India, Turkey, Iceland and Nigeria.
At the top of the table, the Brits still marginally lead the way with the West Bromwich Building Society offering 6.55% AER on its new Star - Easy Access Account, but only 12 withdrawals are permitted each year. The Alliance & Leicester eSaver follows closely behind with a rate of 6.50% AER, but this includes a 0.35% bonus for the first 12 months and this account also has withdrawal restrictions.
These limits may lead many investors to their nearest rate rivals - the Easy Access Account from FIRSTSAVE First Bank of Nigeria and the brand-new Instant Access Savings Account from Icelandic company Kaupthing Edge, both of which offer the same 6.50% AER without any restrictions or introductory rates. However, are we really willing to place our money into the hands of a little-known foreign bank?
Much of the criticism of foreign banks centres on the story of ING Direct.
The Dutch bank was launched into the UK market amid a blaze of publicity with a rate that was, at the time, some 0.55 points ahead of the base rate. Unfortunately, it was all downhill from there for its savers as it refused to pass on several base rate rises and currently sits at 5.15% AER, some 0.35% below the base rate, though new customers will earn 5.70% AER for the first 12 months.
Many analysts fear that other foreign banks may follow a similar strategy to ING - grasping a large share of the market initially and then lowering rates to boost profits.
Certainly this tactic can't be ruled out, but should we really live in fear of it?
Take ICICI as an example. The Indian bank has more than 100,000 customers across the UK and claims it can offer leading rates due to lower costs. It is also now the second-largest bank in the sub-continent with 24m customers in India. Its HiSAVE Savings Account, which also has no penalties for withdrawals, has sat close to the top of the best buy tables for nearly two years and currently offers an attractive 6.41% AER with a great guarantee to be 0.30% above the Bank of England base rate until 31st December 2011.
FIRSTSAVE First Bank of Nigeria introduced a similar guarantee two weeks ago with the promise that its interest rate will exceed the Bank of England base rate by at least 0.25% on balances over £100 until 1st January 2010.
The new Kaupthing Edge Instant Access Savings Account meanwhile, is the market-leading easy access account for its base rate guarantee, which promises that the account will be at least 0.30% above the base rate until 1st February 2012. In addition, once customers have opened a Kaupthing Edge savings account, they have the option to maximise their returns by locking all or part of their savings in a fixed period deposit account, with interest of up to 6.86% AER.
Reassuringly, ICICI, FIRSTSAVE First Bank of Nigeria, Kaupthing Edge and Heritable Bank, which is owned by the Icelandic bank Landsbanki, have all signed up for the voluntary Banking Code, which provides additional protection for customers and offers a port of call to lodge complaints. Akbank N. V which is authorised and regulated by De Nederlandsche Bank, but owned by Akbank T.A.S., has not signed up.
Perhaps therefore consumers should not be too concerned with where a provider is from but instead look at what protection they offer - if a bank is signed up to both the Financial Services Compensation Scheme and the Banking Code, then customers should be able to rest easily.
Another tip is to put no more than £35,000 into each savings account - that way, in the unlikely event that a bank were to collapse, all your savings would be protected.
It may not fill us with national pride to look abroad for our savings, but as long as foreign banks continue to offer us straightforward savings accounts with high rates of interest, even the most xenophobic saver will find it difficult to resist more money in the bank. If nothing else, it should place pressure on the British banks to offer us better deals to win our custom back.
