Santander sharpens its rate offering

Jersey-baed Santander Private Bank has sharpened its deposit interest rate offering saying it’s responding to the “abnormally low interest rate environment” that has seen UK base rate remain stuck on its record low of 0.5% for nearly three years.

Santander has launched a portfolio of sterling fixed rate contracts over varying terms from six moths to five years to attract the attention of both corporate clients and professional intermediaries.

The bank claims that by fixing interest rates it’s offering investors the added advantage of knowing what return they can expect over a given period of time. Its new suite of accounts have rates set as follows: fixed deposit contracts at 4.15% gross/AER on deposits over £100,000 for five years. Three and two year deposits at 3.65% gross/AER and 3.55% gross/AER respectively on similar opening balance sums. There’s also a nine month account at 2.60% gross/2.61% AER, 12-months at 3.40% gross/AER, and 18 months at 3.65% gross/3.62% AER.
 
Head of Investment Products Paul Clifford, comments, “Initially, around two or three years ago, we saw clients opting for relatively straightforward short term interest rate accounts which offered a balance of access and return. However, as clients have become more wary, due to rising uncertainty in the equity markets, we have seen an increase in demand for a much wider range of fixed term contract options due to the security they are able to add to a portfolio.”
 
Globally, Santander Private Banking has over €90bn of client funds under management and over 120 offices worldwide.

www.santanderpb.je