Icesave have increased the interest rates on two of its savings accounts from 25 June.

The Icelandic bank has increased the interest rate on its Icesave Easy Access Savings Account from 6.05% to 6.30% as well as increasing the AER on its Icesave Fixed Rate Savings Account from 7.01% to 7.06%.

With these two Icesave Savings Accounts, you can choose to have your interest paid monthly or yearly and, because the bank is registered with the Financial Services Authority (FSA), be safe in the knowledge that your money will be covered under the Financial Services Compensation Scheme (FSCS) even though the bank is Icelandic.

The Icesave Easy Access Savings Account gives the saver online access to their money 24 hours a day, seven days a week and guarantees to beat the Bank of England base rate until October 2011 and match it until 31st January 2013. To open the account, you need a deposit of £250 and there are no catches or penalties if you withdraw your money.

The Icesave Fixed Rate Savings Account is a term account and you will therefore not be able to make any deposits or withdrawals once the account has been opened. You can open an account with £1,000 and the interest rate of 7.06% will be fixed for the entire term of the account; a time period you can choose out of either 6 months, 1, 2, or 3 years. The account also offers 24/7 online access so you can view the progress of interest being added to your account

To open either of these accounts you must be at least 18 years of age.