Lloyds TSB International Announces Increase for Fixed-Term Savings Rates Due to Growing Expat Demand

    LONDON, ENGLAND, November 10, 2011 /24-7PressRelease/ -- The international bank has recognized a growing need for fixed term deposits among Britons resident abroad.

- Bank unveils rises for its one, two and three-year Sterling rates, as below:
Term New AER Old AER
One year 3.1% 2.5%
Two year 3.2% 2.6%
Three year 3.3% 3%
Five year 4% 4%

- GBP10,000 minimum deposit and GBP5,000,000 maximum
- Increase in demand of 20 per cent recorded by Lloyds TSB International for one-year fixed-term deposits (FTDs) during the last three months
- Bank believes demand reflects a growing expectation of "flat-lining" base rates

An increase on fixed-term deposits (FTDs) for one, two and three year terms has been announced by Lloyds TSB International. This is despite forecasts of when the Bank of England will lift its base rate being pushed back to Q3 of next year.

Lloyds TSB's international banking arm has highlighted the fact that expat savers share a common view that the base rate looks set to remain at its historic 0.5 per cent low in the medium term. It is these fears which have, in turn, prompted a surge in the popularity of one year FTDs, it explains.

Commenting on the announcement, Managing Director of Expatriate Banking at Lloyds TSB International, Tony Wilcox, said: "Expat savers are becoming increasingly savvy in this low interest rate environment and many quickly moved their money into one year FTDs as prospects of a flat-lining base rate increased."

Lloyds TSB International provides a range of offshore savings solutions. Over the last three months, the bank also reports that there has been a 20 per cent increase in demand for one year FTDs, with Mr Wilcox adding that Lloyds TSB economists have suggested the Bank of England base rate won't see a rise until the third quarter of 2012 - at the earliest.

"So, providing expats don't need access to a certain portion of their savings over this period," he noted, "a good one year FTD seems like an attractive option. By the time the account matures, it may have been a good time to consider their options regardless of where they had been holding their money."

Recent sales data from Lloyds TSB International also reveals some interesting trends in the saving habits of expats over the course of the last 24 months - showing they are reacting quickly to changes in the economic landscape.

"During 2010 we saw a higher demand for longer term FTDs as customers looked to take advantage of good rates at a time when base rates seemed unlikely to change soon. In early 2011, we saw interest shift to instant access products as expectations of base rate increases made customers nervous about locking into longer fixed terms," Mr Wilcox concluded.

"Now, over the last three months, we've seen demand for one year FTDs increase as prospects of higher base rates in the short term have ebbed away."

Lloyds TSB International's fixed term deposit accounts are available for expats and residents of Ireland. These new rates are available for fixed term deposits from Wednesday 28 September 2011.

Lloyds TSB has opened over 20,000 international bank accounts in the last 12 months. The bank provides financial guidance and a checklist to help people emigrate at: www.lloydstsb-offshore.com.

Issued by Lloyds TSB Offshore Limited and Lloyds TSB Bank (Gibraltar) Limited. Lloyds TSB Offshore Limited registered office and principal place of business: PO Box 160, 25 New Street, St Helier, Jersey JE4 8RG. Registered in Jersey, no 4029.Regulated by the Jersey Financial Services Commission. The Isle of Man branch of Lloyds TSB Offshore Limited is licensed by the Isle of Man Financial Supervision Commission and registered with the Insurance and Pensions Authority in respect of General Business. Business Address: PO Box 111, Peveril Buildings, Peveril Square, Douglas, Isle of Man IM99 1JJ.

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