Bradford And Bingley Raises Offshore Interest Rates

by Carla Johnson, Investors Offshore.com, London

20 July 2007

Isle of Man bank Bradford and Bingley International has announced a range of bonds and tracker accounts at increased interest rates.

B&B's latest one-year fixed rate savings bond (Issue 30) is paying 6.30% with interest being paid at maturity on 15 August 2008. The fixed rate savings bond can be opened with deposits of GBP10,000 or more with savers enjoying the interest rate of 6.30% from the moment their funds are received. The closing date for pplications is 15 August 2007 or before if fully subscribed.

Lynette Byrne, Acting Managing Director for BBI commented, "As this is a limited edition fixed rate savings bond we would advise customers to book their place in the bond as early as possible. The rate of 6.30% is earned on funds as soon as they are cleared in the account and so it really is worthwhile booking in early to avoid disappointment."

Despite being a fixed account, bond holders with Bradford & Bingley International have the additional convenience of an emergency withdrawal option. If a customer needs access to their funds before the bond maturity date, they can do so subject to a 90-day interest penalty on the funds withdrawn. Bond holders therefore have the flexibility to react to any unforeseen changes in their circumstances during the fixed rate period of the investment.

Due to the success of B&B's Fixed Rate Bond (Issue 1) the bank has also launched a Fixed Rate Income Bond (Issue 2) specifically designed for customers wishing to receive a monthly interest from their fixed term deposit. Fixed Rate Income Bond (Issue 2) is a one-year savings bond paying 6.15% maturing on 15 August 2008.

The bond is ideal for anybody looking to earn an income from their savings. This can be a great way to supplement existing income or pension. The fixed rate ensures that bond holders can be certain of the amount of income they will receive on a monthly basis throughout the period of the bond. This guaranteed rate also protects their income should there be a decrease in Bank of England Base Rate.

This bond too offers the additional convenience of an emergency withdrawal option. If access is required to the initial deposit before the bond maturity date, customers can make withdrawals subject to a 90-day interest penalty on the funds withdrawn. Bond holders therefore have the flexibility to react to any unforeseen changes in their circumstances during the period of the investment.

Rates on B&B's base rate tracker savings account, Tracker 120, have also increased. The change is effective from 11 July 2007 and is in direct response to the Bank of England announcement on 5th July 2007. Customers have again benefited from BBI's guarantee to amend tracker account rates within 5 working days of an announcement by the Bank of England. The Tracker 120 savings account has tiered rates and offers a top interest rate of 6.00% for balances of GBP100,000 and above. The interest rate for balances between GBP25,000 and GBP99,999 has been increased to 5.90% and to 5.75% for balances between GBP10,000 and GBP24,999.

BBI's Acting Managing Director, Lynette Byrne commented, "Tracker 120 customers have seen rates increase in May and now again in July to the account's current top rate of 6.00%. The peace of mind provided by the account's guarantee to track Bank of England Base rate at a predetermined level is an important feature for many of our local and international savers. Customers are also delighted by the value added through the account's guarantee to move within 5 working days."

Bradford & Bingley International Limited is licensed by the Isle of Man Financial Supervision Commission to conduct banking business and is a wholly owned subsidiary of Bradford & Bingley plc. Bradford & Bingley plc has given a legal undertaking agreeing to discharge the liabilities of Bradford & Bingley International Limited in so far as Bradford & Bingley International Limited is unable to discharge them out of its own assets and while Bradford & Bingley International Limited remains a subsidiary of Bradford & Bingley plc. Under Isle of Man legislation, deposits made with an Isle of Man office of Bradford & Bingley International Limited are covered by the Depositors Compensation Scheme contained in the Banking Business (Compensation of Depositors) Regulations 1991 (as amended).

Further information on Bradford & Bingley International and its products is available on website www.bbi.co.im.

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