Dollar and euro savings account rates beat base rates

Rates on offer in US dollar and euro offshore savings accounts have risen significantly compared with base rates in the past three years, according to Investec Bank (Channel Islands). According to analysis of data from the bank's US dollar and euro offshore savings indices, the average rate for US dollar savings accounts on 20 July 2005 was 1.84% - almost 140 basis points below the US Fed rate at the time. However, the average rate stood at 2.2% on 31 July, 20bps above the Fed rate. Investec believes the rise is due to increased competition in the US dollar offshore savings market. Th...