Analysis prepared by moneysupermarket.com shows that seven foreign banks in the UK market offer savers interest rates of over 5.2%, with a further two offering rates in excess of 4.75%.
Stuart Glendinning, the managing director of the comparison website, said:
"This is a foreign invasion everyone with money to save can welcome.
These new banks offer savers more choice, higher rates and also put pressure on the existing providers to raise their rates. The only losers are the UK banks and building societies."
India's ICICI Bank and Landsbanki from Iceland both offer 5.45%.
Yet another example where the British financial services industry has been found to be wanting. The message here is clear, adapt and innovate or die.