The time to raise the Bank of England’s official interest rate is not far away, according to Bank of England governor Mark Carney.
The questions on everyone’s lips are when will rates rise and by how much.
In his speech to a conference of actuaries, he hinted a rate rise is on the way but refused to commit to speculate when.
Although he has said the hike will be gradual, for savers and mortgage payers, even a small increase is a major increase.
With the rate pegged at 0.5% for more than four years, even several 0.25% rises over a year or so amounts to significant extra cash for expat savers.
Offshore rates remain steady
Offshore fixed rates are holding steady as the pound rises on Carney’s comments.
Isle of Man’s Conister Bank is still paying the top rate – 3.75% over five years – but has slightly reduced shorter term fixed rates over two years or less.
All the other top 20 accounts have held steady.
“Britain’s economic outlook is rapidly improving considering where the country was not so long ago,” said Carney.
“The future is still far from certain, but consumers, investors and borrowers can expect interest rates to increase.”
Carney also explained future average interest rates should settle at much less than the pre-credit crisis rate of 5% and voiced concerns about the housing market presenting the largest risk to the economy as the Land Registry reports values are rising at the fastest rate for eight years and are back to around the peak last seen in 2007.
| Offshore Fixed Term Savings Accounts - by interest rate | |||
|---|---|---|---|
| Provider | AER | Term | Deposit |
| Conister Bank | 3.75% | 5 Year Bond | £5,000 |
| Skipton International | 2.75% | 5 year Bond | £10,000 |
| Conister Bank | 2.75% | 3 Year Bond | £5,000 |
| Nationwide | 2.30% | 3 Year Bond | £5,000 |
| Skipton International | 2.25% | 3 Year Bond | £10,000 |
| Permanent Bank | 2.11% | 5 Year Bond | £20,000 |
| Permanent Bank | 2.06% | 3 Year Bond | £20,000 |
| Santander | 2.05% | 3 Year Bond | £200,000 |
| Permanent Bank | 2.03% | 2 Year Bond | £20,000 |
| Permanent Bank | 1.99% | 18 Month Bond | £20,000 |
| Newcastle Building Society | 1.85% | 2 Year Bond | £500 |
| Permanent Bank | 1.84% | 15 Month Bond | £20,000 |
| Conister Bank | 1.50% | 2 Year Bond | £5,000 |
| Leeds Building Society | 1.50% | 1 Year Bond | £1,000 |
| Permanent Bank | 1.50% | 1 Year Bond | £20,000 |
| Santander | 1.50% | October 1, 2016 | £200,000 |
| Newcastle Building Society | 1.50% | 1 Year Bond | £500 |
| Nationwide | 1.45% | 1 Year Bond | £50,000 |
| Nationwide | 1.36% | 6 Month Bond | £50,000 |
| Conister Bank | 1.00% | 1 Year Bond | £5,000 |
| Offshore Fixed Term Savings Accounts - by deposit amount | |||
| Provider | AER | Term | Deposit |
| Newcastle Building Society | 1.85% | 2 Year Bond | £500 |
| Newcastle Building Society | 1.50% | 1 Year Bond | £500 |
| Leeds Building Society | 1.50% | 1 Year Bond | £1,000 |
| Conister Bank | 3.75% | 5 Year Bond | £5,000 |
| Conister Bank | 2.75% | 3 Year Bond | £5,000 |
| Nationwide | 2.30% | 3 Year Bond | £5,000 |
| Conister Bank | 1.50% | 2 Year Bond | £5,000 |
| Conister Bank | 1.00% | 1 Year Bond | £5,000 |
| Skipton International | 2.75% | 5 year Bond | £10,000 |
| Skipton International | 2.25% | 3 Year Bond | £10,000 |
| Permanent Bank | 2.11% | 5 Year Bond | £20,000 |
| Permanent Bank | 2.06% | 3 Year Bond | £20,000 |
| Permanent Bank | 2.03% | 2 Year Bond | £20,000 |
| Permanent Bank | 1.99% | 18 Month Bond | £20,000 |
| Permanent Bank | 1.84% | 15 Month Bond | £20,000 |
| Permanent Bank | 1.50% | 1 Year Bond | £20,000 |
| Nationwide | 1.45% | 1 Year Bond | £50,000 |
| Nationwide | 1.36% | 6 Month Bond | £50,000 |
| Santander | 2.05% | 3 Year Bond | £200,000 |
| Santander | 1.50% | October 1, 2016 | £200,000 |
| This list covers most major providers but is not exhaustive. Account rates and minimum deposits are likely to change or be withdrawn at short notice. Some minimum deposits are 'open with' amounts and are scaled up to the headline rates with a bonus or increased deposit amount. | |||
Offshore savings providers
Here’s a list of 10 of the leading offshore savings providers with links to their web sites:
- Conister Bank – Private personal and commercial banking from the Isle of Man
- Investec – Offers international banking services, including savings and investments from the Channel Islands
- Leeds Building Society – Gibraltar branch of the UK based building society serving expats
- Lloyds Bank International – Channel Islands and Isle of Man personal banking for expats
- NatWest Bank – Offshore saving rates from branches in Gibraltar, the Isle of Man and Channel Islands
- Nationwide Building Society – The international service of the popular UK building society
- Newcastle Building Society – Expat saving and banking services from Gibraltar
- Permanent Bank – Isle of Man branch of an Irish-based bank
- Santander – Isle of Man branch of this international bank with a UK high street presence
- Skipton International – Channel Islands branch for expats of the UK building society
Other offshore financial institutions are available and will be added to the list when they issue new products for expat savers.
