Desperate Britons turn to the US dollar

Published:  13 Feb at 3 PM
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As reported by The Telegraph, Lloyds TSB International has announced a marked rise in savers requesting dollar-denominated accounts. It has now almost doubled the rate it awards on one-year fixed-rate US dollar accounts—increasing from 1.5pc to 2.8pc.

Nicholas Boys Smith at Lloyds TSB International says that many wealthy investors banking internationally have lost their risk appetite through 2011, adding that significant inflows of dollar fixed-term deposits are attractive since the currency often performed well during unsteady economic times.

Mr Smith further explained that risk-aversion among American-based international savers might have caused them to cut their foreign exchange exposure, allowing for a little more inflow. He added that locking money away for a couple of years at a fixed rate is now seen as very attractive with such weak prospects of rate increases at central bank bases, something which applies nearly equally in the UK and the US. He expressed his hopes that the firm’s new market-leading schemes would be well-appreciated by global savers.

The new dollar fixed rate of 2.8pc at Lloyds TSB International is the most optimal in a “very limited market”, explains Moneyfacts. With the minimum deposit at just $10,000, Lloyds has also raised its one-year fixed pound rate from 3.1pc to 3.4pc, bringing it right below the optimal deals on the financial market from Clydesdale International, AIB International and Irish Nationwide, who are all paying 3.5pc.
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