Lloyds TSB International improves rates

Lloyds TSB International has improved fixed term deposits for expats who are looking to lock into better rates.

While it leaves one year rates unchanged at 3.1%, Lloyds TSB International has raised two year fixed term deposits to an annual equivalent rate (AER) of 3.55% up from 3.22%, three year rates have risen to 4% up from 3.3% and five year deposit rates are up half a percentage point to 4.5%.

The market currently expects that the Bank of England won’t lift the base rate from its current record low until mid-2014.

Nicholas Boys Smith, Lloyds TSB International said “Demand for short and medium term deposits has increased markedly over the past three months. Much of this is due to our improved rates in September, but we’re also aware that many expat savers are trying to make the most of flat-lining base interest rates and the expectation that these rates won’t increase for quite some time.”

The bank’s own sales data shows that demand for one year fixed term deposits has increased ten-fold in the three months to the end of November, as savvy savers locked in to better interest rates in the medium-term.

“In 2011 we saw a definite shift towards fixed term deposit accounts, particularly those with a one year term, but also those with longer durations. In this low interest rate environment, many people have realised they need to make some changes to ensure they’re getting a decent return on their savings. We expect demand for fixed term deposit accounts to continue rising, and with inflation forecast to fall in 2012, it won’t be long before savers are making money in real terms," says Boys Smith.

Lloyds TSB International’s fixed term deposit accounts are available for expats, and residents of Jersey, Guernsey, the Isle of Man and Ireland. The minimum deposit is £10,000, maximum of £5,000,000. Apart from exceptional circumstances, withdrawal is not possible before the completion of the fixed term. A charge may be payable in such circumstances. All rates quoted are annual equivalent rates (AER), which illustrates the gross rate as if paid and compounded once per year.

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