Guernsey Bank Increases Interest Rates

by Carla Johnson, Investors Offshore.com, London

16 July 2007

Landsbanki Guernsey, the specialist offshore subsidiary of Landsbanki Islands has announced that it will be passing on at least the full 0.25% recent increase in the Bank of England Base Rate on its variable rate savings accounts. The interest rate on its International Access account will increase by 0.30%.

The International Access account now offers an annual interest rate of 6.01% AER, while the International 60 pays 6.11% AER and the International Tracker 90 has an interest rate of 6.21% AER. The interest rate on the 1 year Fixed Rate Bond has also been increased to 6.21% (AER), while interest rates of up to 6.41% (AER) are available for longer terms. Savers can opt for either annual or monthly payment of interest on all variable rate accounts except the International 90, where interest is paid annually. On Fixed Rate Bonds, interest can be paid annually or at maturity.

Mark Sismey-Durrant, Director, Landsbanki Guernsey, comments:
“Increasing interest rates regularly and promptly passing on increases in the Bank of England Base Rate on our variable rate accounts, shows that we are committed to our customers and are responsive to their needs. We aim to constantly review our products to ensure we are consistently competitive.”

The accounts are available for deposit amounts from GBP10,000 to GBP2 million and those wishing to invest can either contact the Bank for an application pack or download one from the website.

Landsbanki Guernsey Limited is licensed and regulated by the Guernsey Financial Services Commission under the Banking Supervision (Bailiwick of Guernsey) Law, 1994, as amended. Landsbanki Guernsey's registered address and principal place of business is Regency Court, Glategny Esplanade, St Peter Port, Guernsey, GY1 3NZ.

Deposits made with Landsbanki Guernsey are not covered by the Financial Services Compensation Scheme established under the UK Financial Services and Markets Act 2000, nor any equivalent scheme in Guernsey. Landsbanki has given an undertaking to discharge those liabilities of Landsbanki Guernsey which Landsbanki Guernsey is unable to discharge from its own assets, whilst it remains a Landsbanki subsidiary.

Landsbanki Guernsey interest rate changes are effective from 13th July 2007.

Landsbanki is a growing European bank with total assets of ISK 2,317 billion (EUR 26.4 bn) at 31 March 2007 and a market capitalisation of ISK 383 billion (EUR 4.4 bn) at 3 May 2007. Headquartered in Reykjavik, Iceland, Landsbanki Islands hf. is traded on the OMX Nordic Exchange Iceland under the symbol . Landsbanki is rated by Moody's (Aa3 / P-1 / C / Stable) and Fitch (A / F1 / B/C / Stable).

Building on its strong foundation in Iceland, Landsbanki has successfully extended its financial operations into new markets, focusing on serving mid-cap corporates in Europe. The bank's unique product line includes access to both debt and equity markets; its research department is among the most comprehensive in Europe, including some 90 analysts covering more than 800 European stocks locally. Landsbanki and its subsidiaries now operate in all major financial centres of Europe, and have North American representation in New York and Halifax. Through its extensive distribution network, Landsbanki has a strong platform to deliver targeted financial services based on local expertise.

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