Even though the Bank of England Monetary Policy Committee has kept the base rate at a record low of 0.5% since 5th March 2009, fixed savings rates have continued to fall.
Offshore savings rates offered by retail Banks have followed the falls shown by their onshore cousins.
Nationwide International has reduced the interest rate payable on its accounts. On balances of £50,000 or more fixed for one year the rate has fallen from 3.4% to 3%. On balances between £5000 and £49,999 the rate has gone from 2.7% to just 2.3%.
Co-operative Bank owned Britannia International has issued a new one-year fixed-rate bond paying 3.25% on a minimum £5,000.
The gossip in key financial markets around the world seems to indicate no rate rise until at least 2016 meaning that low fixed savings rates are here to stay. Expats may be loathe to tie their money up for an extended period of time.
With a prevailing economic and financial environment like this it is even more important for expats to make their money work harder for them.
British individuals either working abroad or considering doing so should always consult a quality assured Independent Financial Adviser. If you would like us to make a recommendation the please don’t hesitate to let us know today.