Higher Profile For Royal Bank Of Scotland Expat Services

by Jason Gorringe, Investors Offshore, London

20 September 2002

This week RBSI announced a new capital guaranteed deposit accounts, offering the opportunity to earn up to 25 per cent interest over only three years. The Bonus Builder Account will track the performance of three of the world’s leading stock market indices, the FTSE 100, S&P 500Ò and the Dow Jones EURO STOXX 50SM. The Account will be available to sterling, US dollar and euro depositors with a minimum deposit of £5,000, US$10,000 or euro 10,000.

Sterling depositors will earn interest from a minimum of nine per cent up to a maximum of 25 per cent over the three year term. The term is split into six bonus periods and three per cent interest is accrued in each period where all three indices either rise or stay static. Bonus payments are locked-in and secured and, if all six bonus payments are accrued, an additional bonus payment of seven per cent will be added at maturity. No matter how the three indices perform, a minimum guaranteed return of nine per cent will be paid at the end of the three-year period.

The Bonus Builder is also available in euro and US dollars, and depositors will earn a minimum of six per cent over the three-year term, up to a maximum of 20 per cent. Each bonus period will earn two per cent interest where the indices are the same or higher than their level at the start of the bonus period. Again, if all six bonus payments accrue, an additional bonus will be paid at maturity of eight per cent. Again, no matter how the three indices perform, a minimum guaranteed return of six per cent will be paid at the end of the three-year term.

Director, Retail Banking for RBSI, Peter Shirreffs, commented:

“The Bonus Builder Account is linked to the performance of three highly rated indices, tracking some of the world’s leading companies. The entry level is low, funds are tied-up for a relatively short period and, in the current low interest rate environment, the guaranteed minimum return is attractive compared to standard deposit accounts.”

The offer is available for a strictly limited period, on a first come first served basis, with a closing date of 4 December 2002. The offer will close earlier if fully subscribed. The account is located offshore and all income will be paid gross of tax at maturity.

Also this week, Royal Bank of Scotland division NatWest announced that it has appointed Wil Beaumont as Managing Director, Expatriate Services, where he will take up a new post responsible for managing the Bank’s expanding expatriate business. Mr Beaumont has over 20 years' experience working in senior roles within the personal and corporate networks of NatWest.

Most recently, Mr Beaumont was Relationship Development Director for The Royal Bank of Scotland Group plc’s (RBS) Bancassurance business. In this role he was responsible for increasing developing the sale of investment, life and pension products and services through both the NatWest and The Royal Bank of Scotland networks.

Mr Beaumont commented: “I am delighted to be joining the Group’s Expatriate businesses at such an exciting time in their development. I firmly believe we now have the opportunity to deliver a customer service proposition with a real difference. “

Royal Bank of Scotland, which took over the UK's National Westminster Bank some years ago, has substantial banking operations in the Channel Islands and the Isle of Man under the Royal Bank of Scotland International (RBSI) label, from where it provides offshore products and services many of which are of interest to expatriates.

Lately, RBSI has been under the spotlight as it transferred a number of jobs from Jersey and Guernsey to the Isle of Man, as part of a streamlining initiative which will see inward payments centralised in the Isle of Man. The move was in response to high staff and infrastructure costs in the Channel Islands by comparison with the Isle of Man.

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