Expats are only too well versed in seeing slashed rates and poor deals from their offshore savings accounts.
So this month’s round of new deals holds no real surprises.
Expats may consider some of the rates reasonable in the context of how the market has operated in recent months, but the best news is the government switching off the tap on funding for lending for banks and building societies.
The scheme offered lenders cash without having to go through the bother of arranging deals on swap markets or encouraging deposits from savers.
Safety net
Now that safety net has gone, many will have to revise their deals for offshore savers to lure funds in for mortgage borrowers, especially as the housing market is picking up and the squeeze on credit is relaxing for home buyers.
The Nationwide has sliced rates on most savings accounts by 0.25%.
The news here for savers is Nationwide International is switching from a subsidiary to part of the building society from February 2014. The building society says the change will be seamless for offshore customers, who will keep the same account numbers and still be paid interest gross.
Account changes
The offshore branch will continue to trade as Nationwide International.
Meanwhile the troubled Co-Op Bank is reminding account holders that variable rate offshore accounts must be closed by December 16, 2013 and offshore current accounts will close for business on December 30, 2013.
Fixed rate accounts have closed already.
Here are the latest interest rates on offshore saving accounts:
Bank |
Rate |
Fixed until |
Minimum deposit |
Skipton International – International Reserve Bond – Issue 1 |
2.75% |
31.01.2019 |
£10000 |
Skipton International – International Reserve Bond – Issue 4 |
2.25% |
31.01.2017 |
£10000 |
Permanent Bank – 3 Year Fixed Deposit |
2.15% |
3 Year Bond |
£20000 |
Permanent Bank – 2 Year Fixed Deposit |
2.08% |
2 Year Bond |
£20000 |
Permanent Bank – Limited Edition Fixed Term Deposit Issue 1 |
2.04% |
15 Month Bond |
£20000 |
Permanent Bank – 5 Year Fixed Deposit |
1.92% |
5 Year Bond |
£20000 |
Permanent Bank – 1 Year Fixed Deposit |
1.85% |
1 Year Bond |
£20000 |
Santander– 2 Year Fixed Rate Bond |
1.80% |
01.01.2016 |
£500 |
Nationwide International – 3 Year Fixed Rate Bond Issue 7 |
1.80% |
3 Year Bond |
£50000 |
Nationwide International – 1 Year Fixed Rate Bond Issue 8 |
1.45% |
1 Year Bond |
£50000 |
Source: Moneyfacts