One Year Fixed-term Deposit Rates Increased by Lloyds TSB International

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Lloyds TSB International’s fixed term deposit accounts are available for expats, and residents of Jersey, Guernsey, the Isle of Man and Ireland. These new rates are available for fixed term deposits from Tuesday 7 February 2012 and are correct at time of going to press. The bank provides financial guidance and a checklist to help people emigrate at:

Lloyds TSB International has announced a lift in the rates on its one-year Sterling and US Dollar fixed-term deposit (FTD) accounts, as part of a raft of interest rate increases for its international savers.

The move comes in spite of the fact that the Bank of England base interest rate has remained at just 0.5 per cent and rates in the United States hover around the zero mark. This makes the international bank’s Sterling FTD rate almost seven times the UK base rate, with the US Dollar rate over 11 times the US base rate.

According to the bank, there has been a real increase in demand for US Dollar and Sterling one year FTDs in recent months, with Lloyds TSB International spokesman Nicholas Boys Smith stating that this may have been driven partly by wealthy investors’ growing attraction for the relative safe haven of the Dollar in the case of US Dollar FTDs.

“Many wealthy investors who bank internationally lost their appetite for risk through last year and we saw significant inflows in US Dollar fixed term deposits which are attractive because the currency tends to perform well during uncertain economic times,” he explained. “Also, risk-aversion among US-based international savers may have prompted them to reduce their foreign exchange exposure, opening the taps a little further for these inflows.

“On top of this, locking your money away for a year a two at a fixed rate now seems very attractive with such meagre prospects of central bank base rate increases – something that applies nearly equally in the US and the UK,” Mr Boys Smith concluded. ”We hope that our new market-leading offers are well-appreciated by international savers.”

According to Trevor Williams, Lloyds TSB International Economics Adviser, it is forecast that the Bank of England base is unlikely to see any rate increase until at least 2013, with the US Federal Reserve base interest rate expected to remain near zero until around late 2014.

Details on how to apply for Lloyds TSB International fixed-term deposit savings accounts can be found at

1 Gross Rate – the contractual rate of interest payable before deduction of income tax at the rate specified by law. AER (Annual Equivalent Rate) – the notional rate which illustrates the gross rate as if paid and compounded once per year.
2 Apart from exceptional circumstances, withdrawal is not possible before the completion of the fixed term. A charge may be payable in such circumstances. Interest is paid annually.
3 Based on MoneyFacts Offshore Savings rate tables, 20 January 2012.

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Table showing new One year fixed-term deposit rates increase by Lloyds TSB