The bank has seen a 20% increase in demand for one-year products in the last quarter and they are hoping to continue to capitalise on the trend.
The reason for this trend, according to the bank, is that more and more depositors are coming to the conclusion that UK rates are going to stay at 0.5% for at least a year – so they might as well lock in better returns for at least that length of time.
This also coincides with a strong push by banks everywhere to increase their capital base by offering highly attractive rates.
Lloyds TSB is targeting the short-term end of the market, as the one and two-year versions have the biggest boost, while the 5-year is untouched.
| Term | New AER | Old AER |
|---|---|---|
| 1-yr | 3.1% | 2.5% |
| 2-yr | 3.2% | 2.6% |
| 3-yr | 3.3% | 3% |
| 5-yr | 4% | 4% |
Rates on the Lloyds TSB International sterling fixed-term deposits
The minimum deposit on the sterling fixed term deposits is £10,000; the maximum £5,000,000
