Abbey International unveils two savings products
From News May 13 2009 BY: Helen Burggraf
, Deputy Editor
, International Adviser
Abbey International, the Jersey-based arm of Santander's Abbey National banking group, has launched two products -- a new issue of an earlier base rate tracker account in a one-year, sterling version, and a deferred interest deposit account, available in sterling, euros and dollars
Abbey International, the Jersey-based arm of Santander’s Abbey National banking group, has launched two products – a new issue of an earlier base rate tracker account in a one-year, sterling version, and a deferred interest deposit account that is available in sterling, euros and dollars.
The Base Rate Tracker Term Account (Issue 10) is part of Abbey International’s range of deposit accounts, and offers a variable bonus starting at 0.3% over the UK Base Rate over the 12 months of the account’s life. The minimum deposit/balance is £50,000, and it is guaranteed, meaning that depositors cannot lose this amount the way they might with some other investments, Abbey said.
Abbey International has a minimum balance entry requirement of £50,000 (or currency equivalent) across its product range, although this can be spread across a range of accounts, as long as the minimum opening deposit for each account is met.
The interest rate schedule is as follows:
• 5 May – 31 August 2009: UK Base Rate plus 0.3%
• 01 Sept 2009 - 31 Dec 2009: UK Base Rate plus 0.1%
• 1 Jan 2010 – 05 May 2010: UK Base Rate
Multi Currency Deferred Interest Deposit Account
Abbey International's new Multi Currency Deferred Interest Deposit Account, meanwhile, allows depositors to choose the date when their deposit is paid, as interest is only credited when the account is closed. This enables depositors' interest income to “roll up” and accumulate exponentially, even though the interest is only credited when the account is closed.
Depositors with investments in this account, which has a minimum opening balance of £50,000, €75,000 or $100,000, accrue interest daily on cleared balances.
Interest rates on the Deferred Interest Deposit Account vary, with sterling deposits currently attracting 0.3% gross/AER, those in euros earning 1.05% gross/AER, and accounts in US dollars receiving 0.05% gross/AER.
The Deferred Interest Deposit Account cannot be closed within the first two years of its life; after that, a 30-day notice period is required for those wishing to collect their capital without paying an interest penalty. At this point, capital and interest can be paid to a designated account anywhere in the world, according to Abbey.
Abbey International head of client experience Jane Matthews said the ability to choose the date when they can take potentially taxable interest income can offer “significant advantages” to depositors.
“For the international client with sophisticated financial arrangements...this new account may give the flexibility needed to maximise this kind of effective highly personal tax planning,” she added.
In response to possible investor concerns about bank safety following recent problems with failed Icelandic banks and products backed by Lehman Brothers, Abbey International notes in a statement accompanying details of these products that all its deposits “carry the full and unconditional guarantee of Abbey National plc, itself a wholly owned subsidiary of the Santander Group”.
Further information is available at + 44 (0)1534 885055, or on Abbey International’s website atwww.abbeyinternational.com.