pressure from the changes made by the US Federal Reserve.

Now depositors at Gibbons Deposit Company will get less interest on their savings -- but lending rates have also gone down.

A release said: "The first four months of 2001 have experienced record rate cuts by the Federal Reserve in the US. As a result of these cuts, and further downward pressure on money market rates, Capital G's deposit company has decided to reduce lending rates in Bermuda dollars.'' For loans that are less than 15 years, the rate will be 7.75 percent, while loans of over 15 years will be eight percent.

Customers of Capital G will be notified by post with details of the changes.

And the lending and deposit company will also be tiering its savings rate.

"With lower lending rates, and changes to global fixed income and debt markets, Capital G is now going to tier its Bermuda dollar daily savings rate'' Now accounts with less than $25,000 will get a rate of 4.75 percent compounded on a daily basis, and for accounts with over $25,000 the rate will be 4.25 percent.

The company also announced that its certificate of deposit (CD) rates have been decreased by varying amounts based on what type of deposit the customer has.

This varies from 3.9 percent for a one month CD with $5,000 at the lower end to six percent at the higher end for five years CD over $100,000.