Fixed offshore savings rates for expats have dropped again leaving little in the way of rich pickings for investors seeking to bolster their pots of cash.
Lloyds TSB International’s top rate of 4.30% on a five-year fixed deposit has gone as predicted – with 0.55% slashed off the rate to leave a new market leading rate of 3.75% for a minimum deposit of £10,000 over 60 months.
Where the field was lagging Lloyds TSB, two other offshore banks are closing –
Santander and Clydesdale are both offering 3.70% fixed for five years – the difference being the amount of cash savers have to tie up as a minimum deposit.
Three year fixed rates
Clydesdale will accept £10,000, but Santander wants a whopping £100,000 for the same rate over the same term.
Dropping down to three year tie-ins, The Co-operative Bank is a nose ahead of Santander.
The Co-op is paying 3.62% on £5,000 tied up for three years, while Santander pays 3.6% over three years, but still wants that £100,000 on deposit.
Coming down to short-term fixed rate deals, the Co-op seems to still have the edge, paying 3.25% over two years for a £5,000 minimum deposit.
Bank of Ireland is offering 3.0% fixed rate for a one year deposit of £25,000.
Taking the short-term midground is the Permanent Bank with choice of a 3.05% fixed rate over one or two years on a £20,000 minimum deposit.
Alliance & Leicester pays 3.0% on £5,000 until September 30, 2014.
Notice accounts are paying even less – The Nationwide has a 95-day notice account paying 2.58% or a no-notice account paying 2.32% both on a minimum deposit of £25,000.
The Alliance & Leicester offers 2.5% on 180 day notice and 2.45%b on no notice for a £5,000 deposit, while the Skipton Building Society pays 2.27% on 120 days notice on a £100,000 deposit.
The markets seem to be heading down – the US Federal reserve has already hinted rates will stay at a record low until the end of 2015, and it’s likely the Bank of England will follow suit.
Some are even expecting a cut of the European Central Bank official rate next month, as both the Fed and ECB embark on an uncapped round of bond buying to prop up ailing economies in the US and Eurozone.