Investec Bank (Channel Islands) has raised the interest rate on its US dollar Horizon Account to 4% ...
Investec Bank (Channel Islands) has raised the interest rate on its US dollar Horizon Account to 4% for balances of $50,000 or more, claiming this is the highest rate offered on such accounts in the offshore market.
Anna Malcolm, spokesperson for Investec Bank, said the rate of interest on Horizon was raised from 3.7% to 3.8% on 30 August compared to the Federal Reserve rate of 3.5% at the time.
When the Federal Reserve rate was increased from 3.5% to 3.75% on 20 September, Investec raised the interest rate on Horizon to 4%.
Savers in the Horizon Account have to provide 90 days' notice and need a minimum investment of $50,000 to benefit from the rate. The interest on the US dollar Direct Reserve Account has also been increased by 0.25% for savers with at least $50,000. It is now 3% for those saving $50,000 to $74,999, 3.25% for those with $75,000 to $149,999, 3.37% for $150,000 to $374,999 and 3.5% for amounts of $375,000 and above.
Malcolm said Horizon has been attracting savers from offshore accounts offered by other banks. But she stressed Investec was not trying to encourage customers to transfer from euro or sterling accounts to benefit from the rising interest rate offered.
The rate on Investec's Euro Direct Reserve Account has been raised to 1.25% on balances between e50,000 and e75,000 and to 1.5% on balances between e75,000 and e150,000.
Fed Reserve rate is 3.75%.
Dollar Horizon account offers 4% for $50,000 plus.
Euro Direct Reserve Account 1.25%-1.5% interest available.
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