Euro offshore savings interest rate gap 'widening'

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The gap between interest paid on Euro offshore savings accounts and the European Central Bank's (ECB) base rate is widening, according to Investec Bank.

Investec’s Guernsey based subsidiary says the gap between average interest payments on Euro offshore accounts and the ECB base rate has reached 0.7% by the end of July 2007. At the end of April 2007, the average return of a Euro offshore account was 3.11% with an ECB rate of 3.75%, a 0.64% difference.  By the end of July, the ECB rate had risen 25 basis points to 4.00% while the average savings interest had risen by 19 basis points to 3.3%, a 0.7% difference. Furthermore, in October 2005, disparity between the ECB base rate and average offshore savings rates was just over 0.5%, indicating...

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