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For once, some offshore savers are getting a better deal than savers onshore

The third anniversary of base rate at 0.5pc falls next month and will surely be marked by the Bank of England yet again leaving it at this low level.

It’s been a long hard three years for savers, particularly those offshore, and there’s no immediate sign of things changing. But there are some reasons for expat savers to be cheerful including how, for once, some are getting a better deal than onshore savers.

Most UK expats will have at least some of their financial affairs, such as their pension, based in their mother country And that means that like it or not, the inflation rate in the UK remains important. Last week there was a sizeable fall in inflation: which is good news for savers.

Anna Bowes, director of savings website http://www.savingschampion.co.uk , said: “It’s encouraging news for savers that inflation has dropped quite dramatically from 4.2pc to 3.6pc, especially for those who rely on their savings. However, it’s still clear that savers have a long way to go to recoup the losses in real terms, since interest rates hit an all-time low and inflation has been rising in recent years.”

She (SNP: ^SHEY - news) added: “The news does give savers a little light at the end of the tunnel, giving some the chance to make a small 'real’ return on some accounts, although it’s tougher for those in offshore accounts because the rates don’t seem to offer as much as in the UK.”

With inflation at 3.6pc, expats will need to opt for a fixed rate lasting for longer than a year to get a real return. And this might be a good idea anyway, given that a fall in inflation probably makes it even less likely that the Bank of England will increase base rate in the near future.

Indeed, Sir Mervyn King, the governor of the Bank of England, hinted that base rate will stay at 0.5pc until 2014 although some experts say it could remain at this level until 2017. Sir Mervyn said that he had “deep sympathy with those who… suddenly find that the returns on their savings have reached, as I said, negligible levels”.

But he said that were interest rates increased to 4pc or 5pc, it may give the impression that savings returns had increased but the overall effects would not be positive. “I think that many savers would find that the value of their wealth would fall more than enough to offset the apparently higher yield and everyone would be worse off,” he said.

However, here’s some good news for offshore savers: in some cases they are getting better deals than or identical rates to those available to onshore savers.

Take for example AIB International ’s 12 month fixed rate of 3.5pc. On the UK mainland, its sister bank Allied Irish Bank GB is paying 3.4pc. It was paying 3.5pc but the rate was cut on Valentine’s Day. This could of course mean that a rate cut is imminent offshore, but two other providers Clydesdale International and Permanent Bank International (formerly known as Irish Nationwide IOM) are also paying 3.5pc.

Clydesdale International’s one-year rate is higher than its onshore sister, Clydesdale Bank, is paying for UK residents the rate is 3.2pc. And Permanent Bank’s one year rate of 3.5pc beats the 3.25pc its owner Permanent TSB (KOSDAQ: 045340.KQ - news) is paying on €10,000 or more for residents in its Irish homeland.

Over two years, Clydesdale International’s 3.8pc is higher than than the 3.6pc Clydesdale Bank pays onshore and Alliance & Leicester’s 3.7pc can be matched onshore by its parent, Santander (Madrid: SAN.MC - news) .

For five years, the picture is more mixed. Lloyds TSB International ’s 4.5pc can’t be beaten onshore by any others in the Lloyds Banking Group (LSE: LLOY.L - news) of companies, with the best deal from the Lloyds family 4.25pc fixed for five years from the Halifax. Clydesdale International’s rate of 4.3pc can’t be beaten by the 4.25pc offered by Clydesdale Bank in the UK. Alliance & Leicester 's UK parent Santander doesn’t currently have a five-year fixed rate to compare its deal with.

While it’s good news that in some cases offshore savers are beating those onshore, it’s worth remembering that this could mean deals may be withdrawn. Fixed rate deals can be taken off the market and repriced at any time. Although this doesn’t tend to happen quite so fast offshore as it does onshore, you should be aware of this risk if you find a rate that’s particularly attractive. Others are likely to feel the same way: which means it could disappear without notice. Charlotte Beugge used tables compiled by Moneyfacts.co.uk in the writing of this article Moneyfacts.co.uk the comparison site you can’t afford to ignore

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Expat rates: reasons to be cheerful

THE NSW Government shouldn't do business with banks that sack local workers, Opposition Leader John Robertson says.

ANZ Banking Group announced last week it was shedding 1000 jobs from its national workforce, while Westpac Banking Corporation is axing 410 jobs and sending another 150 offshore.

"(Premier) Barry O'Farrell needs to take a stand and declare the NSW Government won't do business with banks that sack NSW workers and send local jobs offshore," Mr Robertson said in a statement today.

"The Premier should pick up the phone to the big banks today and tell them he will review their NSW government contracts if they sack NSW workers and send local jobs offshore."

Mr Robertson said Westpac holds a number of NSW government contracts, including transaction banking and credit card accounts.

The bank posted a $1.5 billion first-quarter cash profit today.

The Finance Sector Union said in January that National Australia Bank, ANZ, Westpac and Commonwealth Bank collectively made 3309 roles redundant in 2011.

The union expects further job losses in 2012.

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Dump banks that sack staff, NSW government urged

Hornbeck Offshore Services, Inc. announced that Nicholas L. Swyka has been appointed to its Board of Directors (the "Board"), effective February 14, 2012. In connection with Mr. Swyka's appointment, the size of the Board was increased from eight to nine members.

Mr. Swyka, 67, has over 30 years of energy related investment banking experience. From September 1999 until his retirement in June 2011, he served as Vice Chairman of Simmons and Company International ("Simmons"), one of the largest investment banks providing services exclusively to the energy industry. During this time, Mr. Swyka also served on Simmons' Executive Management, Compensation and Underwriting Committees. From January 1987 until September 1999, he served as Managing Director and Co-Head of Investment Banking for Simmons. During that time, he functioned as senior team leader advising the Boards of Directors of both public and private energy companies on a significant number of transactions, including mergers, acquisitions and divestitures, as well as capital market transactions. Mr. Swyka continues to serve as an Advisory Director pursuant to a consulting agreement with Simmons. Mr. Swyka also currently serves as an Advisory Director to the University of Texas Marine Science Institute and the National Ocean Industry Association ("NOIA").

Todd Hornbeck, Chairman, President and CEO, commented, "We are very pleased that Mr. Swyka has joined our board. Nick brings to our Board significant industry experience, critical insights into the issues facing the global oil and gas industry, a proven track record of providing financial advisory services to the growing energy service sector and a personal knowledge of the history and the accomplishments of our Company."

Related Companies

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Hornbeck Offshore Appoints New Board Member

COVINGTON, La., Feb. 15, 2012 /PRNewswire/ -- Hornbeck Offshore Services, Inc. (NYSE: HOS - News) (the "Company") announced today that Nicholas L. Swyka has been appointed to its Board of Directors (the "Board"), effective February 14, 2012.  In connection with Mr. Swyka's appointment, the size of the Board was increased from eight to nine members.    

Mr. Swyka, 67, has over 30 years of energy related investment banking experience.  From September 1999 until his retirement in June 2011, he served as Vice Chairman of Simmons and Company International ("Simmons"), one of the largest investment banks providing services exclusively to the energy industry.  During this time, Mr. Swyka also served on Simmons' Executive Management, Compensation and Underwriting Committees.  From January 1987 until September 1999, he served as Managing Director and Co-Head of Investment Banking for Simmons.  During that time, he functioned as senior team leader advising the Boards of Directors of both public and private energy companies on a significant number of transactions, including mergers, acquisitions and divestitures, as well as capital market transactions.  Mr. Swyka continues to serve as an Advisory Director pursuant to a consulting agreement with Simmons.  Mr. Swyka also currently serves as an Advisory Director to the University of Texas Marine Science Institute and the National Ocean Industry Association ("NOIA"). 

Todd Hornbeck, Chairman, President and CEO, commented, "We are very pleased that Mr. Swyka has joined our board.  Nick brings to our Board significant industry experience, critical insights into the issues facing the global oil and gas industry, a proven track record of providing financial advisory services to the growing energy service sector and a personal knowledge of the history and the accomplishments of our Company."

Hornbeck Offshore Services, Inc. is a leading provider of technologically advanced, new generation offshore supply vessels in the U.S. Gulf of Mexico and  Latin America, and is a leading short-haul transporter of petroleum products through its coastwise fleet of ocean-going tugs and tank barges in the northeastern U.S. and the U.S. Gulf of Mexico.  Hornbeck Offshore currently owns a fleet of 80 vessels primarily serving the energy industry.

Contacts

Jim Harp, CFO

Hornbeck Offshore Services

985-727-6802

Ken Dennard, Managing Partner

DRG&L / 713-529-6600

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Hornbeck Offshore Announces Appointment of New Director

Federal Treasurer Wayne Swan says the latest financial results from Commonwealth Bank of Australia's (CBA) shows how "hugely profitable" it is, despite the volatile global markets.

The CBA, along with the other big banks - ANZ, National Australia Bank and Westpac - have raised their standard variable mortgage rates in recent days, blaming rising overseas funding costs flowing from the European debt crisis.

The increases came despite the Reserve Bank having left its official cash rate unchanged at last week's monthly board meeting, sparking a verbal stoush between the government and the financial institutions.

St George Bank was the latest bank to lift its standard variable home loan rate, increasing it by 12 basis points - more than the big four, which recorded rises of six to 10 basis points.

CBA, the nation's largest home lender, reported a net profit of $3.6 billion for the six months to December 31 on Wednesday, up 19 per cent from the previous corresponding period.

"They have made that profit despite global volatility in financial markets. It shows they are hugely profitable," Mr Swan told parliament on Wednesday.

He said the banking system should work for "all Australians", not just shareholders, which was why the government had pursued reforms to increase competition.

Still, unlike the ANZ - which led the way in the round of rate moves, and followed up by cutting 1000 jobs - the CBA has no plans for drastic staff reductions, either by redundancy or sending positions offshore.

But CBA chief financial officer David Craig told reporters unemployment was likely to rise in the finance sector and that it was hard to say whether other sectors of the economy would offset that.

His comments came ahead of Thursday's release of official labour force data for January.

Economists' forecasts centre on a 15,000 rise in the number of people employed, although this is not enough to prevent unemployment rate ticking up to 5.3 per cent from 5.2 per cent.

In making its staff decision, ANZ joins a long line of other sectors to announce job reductions, particularly in manufacturing.

But Shop Distributive and Allied Employees' Association boss Joe de Bruyn says he does not believe the cuts will push up jobless figures significantly.

"The truth is there are some job losses getting a lot of publicity but there are companies that are expanding," the union boss told AAP.

Mr de Bruyn said the union's national executive had seen a list of new supermarkets, discount and hardware stores in the pipeline, generating work for hundreds in coming years.

Employment concerns do not appear to be worrying consumers just yet, with the latest reading of the Westpac-Melbourne Institute confidence index rising by 4.2 per cent to 101.1 points in January, and in belated response to the rate cuts in November and December.

Above an index of 100 shows there are more optimists than pessimists.

But Westpac chief economist Bill Evans said the survey period for the index would not have totally taken into account the disappointment that the Reserve Bank left the cash rate unchanged, when a cut was widely expected, or the subsequent increases in bank lending rates.

Mr Evans still expects the Reserve to cut the cash rate by a further 50 basis points this year, with the first 25 basis points likely in March.

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Banking system should work for all: Swan