UK Base Rate on hold, but deposit rates offshore still rising

With the Bank of England again leaving UK Base Rate on hold since March 2009 at 0.5%, their lowest level for 19 months, many savers may well be wondering when the interest rate on their savings account might start to rise.

But information released today by Abbey International, the Jersey based subsidiary which is part of the global division of Santander Private Banking, shows that savers with £50,000 to deposit can earn a guaranteed fixed rate of 3.00% gross/ AER over 12 months or 2.00% gross/AER over a shorter 9 month term.

These rates exceed many ordinary 60 day or 90 day notice accounts by a considerable margin, where according to comparison website Moneyfacts.co.uk, the best rates on offer for an offshore notice deposit account are between 2.25% and 2.60% gross/AER for 60 or 90 days notice respectively.

With many larger balance clients wanting to bank with a group of the size and reputation of Santander, these rates combine to represent a highly attractive package.

Commenting on the current state of the market for offshore deposit accounts and savings, Head of Client Experience Jane Matthews said, “Many savers offshore may be wondering whether it is possible to find a higher interest rate for their offshore savings in the current low UK Base Rate environment. We are very sensitive to the needs of clients who hold savings offshore and who want to use those funds to achieve capital growth. Our shorter term 9, 12 and 18 month Fixed Rate Contracts offer an ideal solution to this problem. Moreover, when added to our Premium Banking services, clients can expect a more personalised approach to ensure their savings are deposited in the best account for their requirements, a service which is ideally suited to the demanding lifestyle many of our clients may have.”

With many overseas residents requiring a multiple currency solution to their banking needs, the low interest rate environment can also be an issue for US dollar and euro savers too. Abbey International offers a multiple currency banking solution offshore and is currently paying 2.50% gross/AER on both US dollar and Euro accounts held over 12 months. A minimum balance of $150,000 or €100,000 is required.

Abbey International is part of the highly regarded Santander Group, which has more than 150 years experience in banking and has clients all over the world. Santander has an AA credit rating from Fitch and Aa2 rating from Moody’s credit rating agencies.

For further information on banking with Abbey International in Jersey, visit abbeyinternational.com.