Lloyds TSB International increases Euro fixed-term savings rate
In the latest of a series of rate increases for international savers, Lloyds TSB International has raised the interest rates on its one-year Euro fixed-term deposit (FTD) account by more than 1.7 per cent to 2.65 per cent.
The bank has improved its one-year Euro fixed-term deposit rate – and now offers:
Term: One year.
New Gross/AER(1): 2.65%
Old Gross/AER: Up to 0.87%
Minimum deposit €10,000; maximum deposit €5,000,000 (2).
Eurozone base rates have remained rooted at one per cent for five consecutive months, and the market expects that the European Central Bank is unlikely to change rates in the near future. With this in mind, savers are looking to take advantage of better interest rates in the short-term ahead of any prospective base rate rise. The Bank’s own sales data has shown surging demand for one-year FTDs in recent months.
Commenting on the new rates, Nicholas Boys Smith, Director, Lloyds TSB International, said: “Increasing our one-year Euro fixed-term rate is the latest in a long line of savings product enhancements that are proving popular with our expat customers.
“Our economists expect that the European Central Bank is unlikely to change the Eurozone base interest rate from one per cent any time soon. Therefore, this makes locking a certain portion of your money away for a year at a competitive fixed rate an attractive prospect, provided of course you don’t need access to it during that period.”
Trevor Williams, Economics Adviser, Lloyds TSB International, said: “At the moment, the pressure on Euro area interest rates is, if anything, for a cut rather than a rise. Economic conditions are troubling outside of Germany and the central bank may have to do more to help struggling Eurozone economies.”
Details on how to apply for Lloyds TSB International fixed-term deposit savings accounts can be found at . www.lloydstsb-offshore.com.
1 Gross Rate – the contractual rate of interest payable before deduction of income tax at the rate specified by law. AER (Annual Equivalent Rate) – the notional rate which illustrates what the interest rate would be if interest was paid and compounded once each year.
2 Apart from exceptional circumstances, withdrawal is not possible before the completion of the fixed term. A charge may be payable in such circumstances.
About Lloyds TSB fixed-term deposit accounts:
Lloyds TSB International’s fixed term deposit accounts are available for expats, and residents of Jersey, Guernsey and the Isle of Man. These new rates are available for fixed term deposits from Thursday 10 May 2012 and are correct at time of going to press.
Article sponsored by Lloyd's TSB International