Although the general feeling may be that UK banks are currently taking a beating an investment expert has suggested Lloyds TSB makes a great investment opportunity right now.
The analyst felt that in the midst of what have been torrid trading conditions Lloyds TSB had announced very encouraging results. The bank has taken a cautious stance on mortgages, buy to let ones especially, and also any securities that are underwritten by assets.
This approach has kept Lloyds TSB away from the worst of the difficulties facing some other banks and left them looking strong as they move forwards. The bank appears to be a relatively safe haven with the cautious management approach but also offers the opportunity for substantial growth as Lloyds TSB uses its relative strength to maximise market opportunities.
The 8.5 percent interest rate offer on the Alliance and Leicester Premier 50 and Premier Direct current accounts is being extended for a further 3 months such has been its popularity.
The high interest rate is guaranteed for the first year of having the account, which also provides a 0 percent overdraft option, again for twelve months. An Alliance and Leicester spokesperson suggested that people could earn a significant amount of extra interest by swapping to these current accounts as well as saving on overdraft charges.
As a nation we tend to stick with the same accounts, with 80 percent of current account holders having been with the same one for five years or more so perhaps this Alliance and Leicester offer can change that, for the benefit of the customer.
One of the largest banks in Japan, Sumitomo Mitsui Financial Group, is considering buying into Barclays Bank as they seek to raise GBP4 billion capital.
Sumitomo Mitsui is considering a 100 billion Yen investment, which would be around GBP500 million. Barclays also have serious interest from some other investors too and if everything goes as planned then the GBP4 billion needed will be achieved with money to spare.
An announcement is expected from Barclays Bank in the next week or so, though existing Barclays investors have to give their final approval before the deals can go ahead. Sumitomo Mitsui are certainly very keen on the deal since they have been finding it difficult to locate good investment opportunities in China.
