Money Watch – Personal Finance Blog

ICICI HiSave Savings Account Update

The Indian-based bank ICICI made the headlines a couple of months ago when it launched its high-paying (5.4%) savings account, HiSave. I wrote at the time about how good a deal it was, but unfortunately it seems that it may have been too good to be true.

Since its launch, it has been appearing at the top of a lot of “best buy” tables for savings accounts, but money saving expert Martin Lewis has just removed it from his best buy list due to a catalogue of poor customer service highlighted on his forums.

It appears that many people trying to open accounts have experienced long delays, and from reading some of the posts on the forum there have been other problems which are far from reassuring. The bank themselves say that they have had problems as they didn’t anticipate the level of interest there would be in the account. Not really what you want to hear from an institution with whom you’re investing your hard-earned money.

Martin’s advice is for those who have already applied to continue with their application, but others should hold back for a while to see if they can sort the problems out.

I’m currently on the look out for a decent savings account (First Direct and Cahoot seem to be the most likely at the moment), so I’ll report back my findings when I’ve had time to do some research.

Update: ICICI have now cleared the backlog of applications (please see my post about it), and have started to appear back on the best-buy tables once again.
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