Cater Allen customers abandon sterling as euro offers safer return

With the official exchange rate showing that the pound sterling is continuing to devalue against the Euro, research from Cater Allen Private Bank has found that an increasing number of its clients have been making use of the bank's multi currency account and shifting their cash out of pounds and into euros.

The bank's data shows that there has been a 32 per cent rise in the amount of funds deposited by customers in euros as opposed to sterling over the last year and a 13 per cent rise from last month alone. The appreciation of the Euro has meant that those holding currency in Euros have received a 33 per cent increase in the value of their deposits in Sterling terms over the past 12 months.

Sally Ann Watts, Head of Banking Products at Cater Allen, said: "Economists are predicting that it is now likely that the Bank of England will follow its counterpart in the United States and cut interest rates further and with higher jobless figures this may also encourage many investors to sell sterling, thus forcing its price downward. It is not surprising that people are looking for non-traditional ways of protecting their money."

Although currency volatility means that there is some risk in holding money in other currencies, many economic commentators believe that the Euro is likely to strengthen further against Sterling.

Sally Ann Watts, continued: "Cater Allen is committed to offering international solutions and choice to its clients. Our multi-currency accounts are suitable not just for those working abroad, but for those who want the flexibility of holding their account in a specific currency.

"Moreover, Cater Allen clients benefit from the service that you would expect from a traditional private bank with dedicated account handlers. We believe in offering our customers the very best in service and choice."

Cater Allen allows customers to hold currency accounts in Euros, Dollars and Sterling - with a minimum balance of just £5000, €10000 or $10000. In addition, Cater Allen Euro account holders can earn interest on their deposits of up to 1.25 per cent.

Although past performance of currency is no guide to future performance, account holders can make the choice of which currency they prefer to hold their cash on the basis of convenience and which currency they perceive to be most attractive on the basis of return and/or stability. Cater Allen customers can easily switch between the different currency options available.