Happy birthday Intelligent Finance

The real rate on Intelligent Finance’s offset would have delivered a whopping 810% return over and above the average savings rate available from the big four banks over the last six years – not a bad birthday present for higher-rate tax payers who have been with IF since launch.

The research by Intelligent Finance reveals the real rate of interest available from its offsetting mortgages and savings since launch would have been far higher than the average returns available from the big four banks’ savings accounts. A lower rate tax payer would have made an additional 511% on the same basis.

Over the last 10 years, savings put in an account which simply pays base rate could have made a lower rate tax payer an additional 329% return compared to the average rate offered by the big four banks, while a higher rate tax payer could have made an extra 314%.

Mark Parker, Managing Director, Intelligent Finance said: “Once people realise that with offset the real rate they can get on their cash is miles better than the average deals on the high street, without extended tie-ins or restrictions, I think they will be amazed.

“810% returns over and above the average savings rates from the big four banks is not a bad birthday present.”

IF campaigns for “Real Rate”

Intelligent Finance’s birthday coincides with its major campaign introducing the new concept of the ‘real rate’ – the equivalent savings rate provided by an offset mortgage. IF and the Are you under-rated? report is calling for greater recognition of offset benefits by industry commentators and ‘best buys’, with Datamonitor predicting that offset will have 30% of the mortgage market by 2009.