The average rate of interest paid on Euro offshore savings accounts has plummeted 1.71% to 1.85% in the past three months, according to Investec Bank (Channel Islands).
However, its Euro Offshore Savings Account Index found although the average rate paid has fallen, the reduction is slightly less than the European Central Bank (ECB) rate.
The ECB rate dropped by 1.75% between 31 October 2008 and 31 January 2009 to reach its current level of 2%. As a result, the gap between the average savings account rate and the ECB rate is 0.15%.
Interest rates have inevitably come down as the ECB rate has fallen, says Laura Preston of Investec in Guernsey.
"However, there are still some consistently competitive accounts available in the market, with the top five Euro offshore savings accounts, according to Moneyfacts, paying 0.75% or more above the ECB rate."
"Now is definitely a good time for savers to check that they are happy with the long-term returns they are receiving," she says.
For more information, advisers can visit: www.investec-ci.com or call: +44 1481 723 506.
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