Bank of England governor Mark Carney is back tracking on comments that the official interest rate could rise ‘sooner rather than later’.
His remarks were intended as giving a heads up to businesses and savers that they should expect rates to rise within a few months instead of in early 2015, as widely predicted by industry experts.
However in a grilling before a select committee of MPs in Parliament, Carney admitted what was meant as a gentle steer was interpreted as a major warning.
He explained that no decision or timescale had been put by the Bank on when and by how much rates might rise.
“The economy will drive interest rate rises, and any decisions will be made based on economic data and in a way that will not damage growth,” he said.
The message is disappointing for expat savers as offshore fixed term saving accounts offer meagre returns, with short term rates particularly low.
The best 12-month rate is 1.5% gross from Permanent Bank.
Fixed term offshore savings for expats – June 25, 2014
The table shows 20 of the best rates currently offered by leading offshore fixed term account providers for expats – the table covers the same deals but is sorted by rate and amount of cash required for a deposit:
| Accounts - by interest rate | |||
|---|---|---|---|
| Provider | AER | Term | Deposit |
| Skipton International | 2.75% | July 31, 2019 | £10,000 |
| Conister Bank | 2.50% | 5 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 |
| Permanent Bank | 2.03% | 2 Year Bond | £20,000 |
| Permanent Bank | 2.03% | 20 Month Bond | £20,000 |
| Santander | 2.00% | 3 Year Bond | £500 |
| Leeds Building Society | 2.00% | January 31, 2016 | £1,000 |
| Permanent Bank | 1.99% | 15 Month Bond | £20,000 |
| Leeds Building Society | 1.75% | July 31, 2016 | £100 |
| Santander | 1.60% | July 1, 2016 | £500 |
| Newcastle Building Society | 1.50% | January 22, 2016 | £500 |
| Permanent Bank | 1.50% | 1 Year Bond | £20,000 |
| Newcastle Building Society | 1.40% | January 22, 2015 | £500 |
| Nationwide | 1.30% | 3 Year Bond | £5,000 |
| Conister Bank | 1.30% | 3 Year Bond | £5,000 |
| Investec Bank Offshore | 1.30% | 1 Year Bond | £50,000 |
| Nationwide | 0.95% | 1 Year Bond | £5,000 |
| Nationwide | 0.85% | 6 Month Bond | £5,000 |
| Accounts - by deposit amount | |||
| Provider | AER | Term | Deposit |
| Leeds Building Society | 1.75% | July 31, 2016 | £100 |
| Santander | 2.00% | 3 Year Bond | £500 |
| Santander | 1.60% | July 1, 2016 | £500 |
| Newcastle Building Society | 1.50% | January 22, 2016 | £500 |
| Newcastle Building Society | 1.40% | January 22, 2015 | £500 |
| Leeds Building Society | 2.00% | January 31, 2016 | £1,000 |
| Conister Bank | 2.50% | 5 Year Bond | £5,000 |
| Nationwide | 1.30% | 3 Year Bond | £5,000 |
| Conister Bank | 1.30% | 3 Year Bond | £5,000 |
| Nationwide | 0.95% | 1 Year Bond | £5,000 |
| Nationwide | 0.85% | 6 Month Bond | £5,000 |
| Skipton International | 2.75% | July 31, 2019 | £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 | 2.03% | 20 Month Bond | £20,000 |
| Permanent Bank | 1.99% | 15 Month Bond | £20,000 |
| Permanent Bank | 1.50% | 1 Year Bond | £20,000 |
| Investec Bank Offshore | 1.30% | 1 Year Bond | £50,000 |
| 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 | |||
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.
