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Research reveals lack of consistency amongst many best-buy Euro offshore savings accounts...

05-May-2009

New research1 from Investec Bank (Channel Islands) Limited (‘Investec’) reveals that many ‘best-buy’2 Euro offshore savings accounts are failing to offer savers any form of consistency. Analysis of Moneyfacts data between 31 March 2008 and 31 March 2009, shows that over the course of the year, only one account remained consistently in the top 10 for best rates for every month for the entire year, which was the Investec Euro Horizon account.

Furthermore just three other accounts offered one of the top 10 rates of interest for more than six months of the year. Both the Nationwide International Euro Tracker Premium Account and the Irish Permanent International, International 30 Account, were amongst the top 10 accounts by interest rate for eight months of the year.

Investec’s research also revealed that the average rate of interest paid on offshore Euro savings accounts dropped by 2.10%, from 3.50% on 31 March 2009, to just 1.40% on 31 March 2009. However, this average rate fall was less than the fall of the European Central Bank Rate (ECB) which dropped from 4.00% on 31 March 2008 to 1.50% on 31 March 2009 – a fall of 2.50%.

Laura Preston of Investec in Guernsey said: “All too often, account providers will offer attractive rates to draw in savers and then cut them back when deposits have reached a high enough level. At Investec we are committed to offering a consistently competitive rate, as reflected by this research.”

The Euro Investec Horizon Account currently pays 2.00% gross3 (2.02% AER4), which is 0.75% above the current ECB rate of 1.25%. It is one of the highest paying Euro offshore savings accounts in terms of AER, as the interest is paid on a quarterly basis allowing clients to effectively compound their interest over the course of a year.

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. The interest can be paid away to a nominated account free of charge. Clients can make withdrawals in over eight currencies by electronic fund transfers.

Investec Private Bank offers a private bank style, friendly 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, fast response and a high attention to detail. Our online statement viewing is also available on all our sought after accounts. For full Terms and 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 31 March 2008 and 31 March 2009. 60 Euro offshore no notice and notice savings accounts were reviewed. Those accounts that offer card/cheque facilities were excluded. Moneyfacts Group PLC of Moneyfacts House, 66-70 Thorpe Road, Norwich, Norfolk NRI IBJ.

2 Defined by rate of interest paid.

3 The rate is correct as at 17 April 2009 and subject to variation. Gross is the contractual rate of interest without any deduction of tax.

4 AER stands for the Annual Equivalent Rate and illustrates what the interest rate would be if the interest was paid and compounded each year.