Private banking: News
Investec Private Bank passes on euro rate hike again 08/12/2006
Author: Stuart Fieldhouse
As euro base rate hits 3.5%, the offshore bank reacted immediately.
Following the European Central Bank's (ECB) announcement that it has increased the European refinancing rate by 0.25 basis points to 3.50%, Investec Bank in the Channel Islands said it was passing on the full rate rise to both its Euro Investec Horizon and Euro Direct Reserve Accounts, with immediate effect.
As of 7 December, the Euro Investec Horizon Account now pays 3.60% gross (3.64% AER2). This is 0.10% above the ECB rate of 3.50%.
The Euro, one month notice, Direct Reserve Account has a tiered structure and now pays 2.75% gross (2.78% AER) on deposits of €50,000 - €74,999; 3.00% gross (3.03% AER) on deposits of €75,000 - €149,999; 3.125% gross (3.16% AER) on deposits of €150,000 -€374,999; and 3.25% gross (3.29% AER) on deposits of over €375,0003.
This is the fifth consecutive time that Investec Private Bank has passed at least the full ECB hike in interest rates onto its Euro Investec Horizon and Euro Direct Reserve Accounts in the last 12 months. The decision relfects an awareness on the part of the bank that, in an environment where rates are starting to climb, clients will keep an eye on which banks are offering the best offshore deposit rates, and how soon the react to rate rises.
Laura Preston of Investec Private Bank in Guernsey said: "We are committed to making sure that we offer consistently attractive rates on our accounts. As part of this we always strive to immediately pass on any change in the ECB rate to our clients."
The Investec Horizon and Direct Reserve Accounts are both available in US Dollars, Euros and Sterling.
The Investec Horizon Account is available to savers with $50,000, €50,000, £25,000 or above. The interest rate on this 90 day notice account is variable, however it will never fall below the US Federal Reserve, ECB or Bank of England base rates. Unlike most accounts, the interest is paid quarterly and can be paid away to a nominated account free of charge. Clients can make withdrawals in over eight currencies by electronic fund transfers and cheques can be issued in US Dollars, Euros or Sterling.
Investec Private Bank offers a private bank style, what it calls a friendly relationship-driven service through a client manager who is based in Guernsey. Clients have access to the direct dial and email address of a client manager who aims to provide a flexible approach, fast response and a high attention to detail.
