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Rate gap narrows between average Euro offshore savings accounts and ECB

29-Aug-2008

This is according to analysis by Investec Bank (Channel Islands) Limited (‘Investec’), part of Investec Private Bank, the international specialist banking and asset manager group, of the latest wave of its Euro Offshore Savings Account Index (‘The Index’)1.

 

The Index reveals that while the ECB rate increased once by 0.25 basis points on the 3 July to 4.25%, the overall average interest rate on Euro offshore savings accounts rose by a greater 0.29% during the period 30 April to 31 July 2008. As a result, the average return on Euro offshore savings accounts increased from 3.64% to 3.93% which is still 32 basis points
below the ECB.

Laura Preston of Investec in Guernsey said: “It is great news for clients that the gap continues to narrow. However, we still believe that savers should be encouraged to shop around as significant discrepancies remain in the interest rates available, with the top accounts, such as the Investec Horizon Account, currently paying at least 50 basis points above the ECB rate.

The Euro Investec Horizon Account currently pays 4.95%2 gross (5.04% AER3), which is 70 basis points above the current ECB rate of 4.25%2. It is one of the highest paying offshore Euro savings accounts in terms of AER and has the benefit that the interest is paid on a quarterly basis allowing clients to effectively compound their interest over the course of a year. The interest can be paid away to a nominated account free of charge.

The Investec Horizon Account is available to savers with $50,000, €50,000, £25,000 or above. The interest rate on this 90 day notice account is variable; however it will never fall below the US Federal Reserve, ECB or Bank of England base rates. Clients can make withdrawals in over eight currencies by electronic fund transfers.

Investec Bank (Channel Islands) Limited offers a private bank style, relationship-driven service through a client manager who is based in the Channel Islands. Clients have access to the direct dial and email address of their client manager who aims to provide a flexible approach, a fast response and a high attention to detail. Our online statement viewing is also available on all our sought after accounts.

For full Terms & Conditions on the Investec Horizon Account, or further information on Investec Bank (Channel Islands) Limited’s other savings accounts and services, visit www.investec-ci.com or call +44 1481 723 506.

1 Based on analysis of Moneyfacts offshore data between 30 April 2008 and 31 July 2008. 49 Euro offshore no notice and notice savings accounts were reviewed. Those accounts that offer card/cheque facilities were excluded.
2 Correct as at 29 August 2008
3 AER stands for the Annual Equivalent Rate and illustrates what the interest rate would be if the interest was paid and compounded each year.