Capital G, the "one-stop financial shop'' formed by the Gibbons company earlier this year, announced yesterday it was lowering its deposit rates.

The move bucked a three-year trend at Gibbons Deposit Company to maintain the rates at a constant.

But Gibbons Deposit president and chief executive officer Sarah Farrington said adjusting the long-term rates on all products with a maturity of two or more years would keep Capital G in line with fellow companies.

"We haven't touched our mortgage rates during a period that other financial institutions have,'' Ms Farrington explained. "It's not so much a competitive business decision as it is simply keeping us more in line with the others, so that we reflect marketwise what's going on.'' The decision followed a lengthy review of general market conditions plus the liquidity of the Bermuda dollar -- which in basic practical terms applies to the amount of new deposits coming in to the company.

Ms Farrington added: "It's very important to note that for existing customers enrolled in these products, their rates will change only at the time the deposit matures and their proceeds roll over for a new deposit period.

"Savings and short-term rates will remain unchanged.'' The products to be switched are as follows: rates for the five-year saver, the two year certificate of deposit (CD) and the five-year CD will drop by 0.25 per cent.

Meanwhile, rates on 40 per cent in five years, plus the Accumulator product, will decrease by 0.375 per cent.

The "Jump Start'' will see the biggest drop in rates, by 0.5 per cent.

The company said it would not be making any further adjustments to mortgage rates at this time.