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ASDA enters the savings market

ASDA has entered into the savings accounts market with a bang, offering a competitively priced no notice internet savings account paying 6.35% with a minimum deposit of £100. The rate includes a 0.60% bonus for the first 12 months, and the underlying rate is guaranteed to be at least equal to Base Rate until 31.10.10.

We think it's good to see another entrant in to the very competitive internet savings market and with this intense competition driving higher rates for savers, this can only be good news.

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At 6.35% it's one of the top internet savings accounts around. But you need to be aware that the rate will become less competitive once the bonus expires after the first year. Traditional banks and building societies are really having to ramp up their game to keep their savings accounts competitive against the new entrants such as supermarkets and overseas providers.

Look beyond your high street and you will be surprised at just how uncompetitive your existing savings accounts have become.

Best buys - savings accounts

Best buys - internet savings accounts