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.

Published: Fri 8 Jun 2012 15:57 CEST
Lloyds TSB International increases Euro fixed-term savings rate

Lloyds TSB International’s fixed term deposit accounts are available for British expats and residents of Jersey, Guernsey and the Isle of Man. These new gross annual rates, which are correct at the time of going to press, are available for fixed term deposits from Thursday 10 May 2012.

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.”

As these are fixed-term accounts, withdrawal is not possible before the completion of the fixed term except under exceptional circumstances. In such cases a charge may apply.

But for those with no short term need to access savings, this account provides an opportunity to profit from interests rates unlikely to be available in standard accounts anytime soon, given the current prognosis for Eurozone base rates.

The European Central Bank's rates have remained rooted at one per cent for five consecutive months, and experts believe 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.

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.

Article sponsored by Lloyds TSB International

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