Offshore saving rates rising as UK base rates remain staunchly low

News - Savings

Written by Ray Clancy

Thursday, 11 November 2010 11:21

While the UK base interest rate remains at its historic low of 0.5% investors looking to get more for their money can find higher rates offshore.

Information released 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% gross/ER over 12 months or 2% gross/AER over a shorter nine month term.

It says that these rates exceed many ordinary 60 day or 90 day notice accounts by a considerable margin, where according to comparison website Moneyfacts, 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, the company claims.

‘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,’ said Jane Matthews, head of client experience.

‘Our shorter term nine, 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,’ she explained.

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, she pointed out.

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 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.