Al Rayan Bank PLC

Al_Ross

Hi Guys,

I was looking for a fixed term 1 year ISA, to transfer in a 2 year one that recently matured and was moved to an easy access one paying hardly any interest.
I came across The Al Rayan Bank PLC, 12 month Fixed Term Deposit Cash ISA paying 1.9 %.

They claim they are protected by the fscs.If this is a genuine deal why is it not mentioned on this site?

Are there any risks here, I am happy to put my money away for 1 year if there are no risks?

blindman

Al_Ross wrote: »

Hi Guys,

I was looking for a fixed term 1 year ISA, to transfer in a 2 year one that recently matured and was moved to an easy access one paying hardly any interest.
I came across The Al Rayan Bank PLC, 12 month Fixed Term Deposit Cash ISA paying 1.9 %.

They claim they are protected by the fscs.If this is a genuine deal why is it not mentioned on this site?

Are there any risks here, I am happy to put my money away for 1 year if there are no risks?

I take it you did not see the Best ISA thread??

antrobus

Al_Ross wrote: »

Hi Guys,

I was looking for a fixed term 1 year ISA, to transfer in a 2 year one that recently matured and was moved to an easy access one paying hardly any interest.
I came across The Al Rayan Bank PLC, 12 month Fixed Term Deposit Cash ISA paying 1.9 %.

They claim they are protected by the fscs....

They are correct.

Al_Ross wrote: »

....If this is a genuine deal why is it not mentioned on this site?...

The top payer is the Al Rayan Bank which pays 2.17% for 18 months, 2.32% for two years and 2.52% for three years – smashing the best buys above. It has the full UK £75,000 per person savings safety protection.

http://www.moneysavingexpert.com/savings/savings-accounts-best-interest

Al_Ross wrote: »

...Are there any risks here, I am happy to put my money away for 1 year if there are no risks?

Sharia-compliant Islamic bank - instead of an interest rate they quote an 'expected profit rate', which technically is not guaranteed, although in practice it is.

Rich2808

They also pay a 120 day notice (4 months) paying 2%.

I can recommend them - very efficient and can apply on line as well as by post/in branch.

They also pay the expected profit/interest monthly - and they haven't not paid it yet. So I hope that get rounds the concern its expected profit - so not guaranteed like interest - you don't wait 12 months to get paid and find out its less as they pay monthly.

And yes its FSCS protected.

Chad_Sexington

Joined the forum specifically to ask about this bank.

I'm looking at the 3 year 2.52% bond because it came out as a top pick on compare the market but I wondered about the the term 'expected profit' as opposed to 'interest' in the bumph.

Does it actually behave like interest? I appreciate it's not guaranteed...(although as per above it's always paid out so far), but is it compounded?

MARTYM8`

Chad_Sexington wrote: »

Joined the forum specifically to ask about this bank.

I'm looking at the 3 year 2.52% bond because it came out as a top pick on compare the market but I wondered about the the term 'expected profit' as opposed to 'interest' in the bumph.

Does it actually behave like interest? I appreciate it's not guaranteed...(although as per above it's always paid out so far), but is it compounded?

You don't actually notice any difference - its just not called interest but expected profit on funds they use to invest for the wider community benefit (as all banks do in effect!).

Chad_Sexington

Thanks Marty, I assumed from a customer (ie 'my') point of view it did behave exactly like interest, and that the semantics behind it was to comply with Sharia law.

Just wanted to confirm before I went ahead and committed. Nice on.

MARTYM8`

Chad_Sexington wrote: »

Thanks Marty, I assumed from a customer (ie 'my') point of view it did behave exactly like interest, and that the semantics behind it was to comply with Sharia law.

Just wanted to confirm before I went ahead and committed. Nice on.

Yes - and the interest is paid on the dot. Despite it being a Sunday my April interest (sorry expected profit) has been credited to my account.

beardiedog

Rich2808 wrote: »

They also pay a 120 day notice (4 months) paying 2%.

I can recommend them - very efficient and can apply on line as well as by post/in branch.

They also pay the expected profit/interest monthly - and they haven't not paid it yet. So I hope that get rounds the concern its expected profit - so not guaranteed like interest - you don't wait 12 months to get paid and find out its less as they pay monthly.

And yes its FSCS protected.

I opened their ISA FT deposit account with the £1000 deposit a couple of weeks ago. I'm not registered for their online or telephone banking at the moment so how do I add more money to the account before the 30 day grace period ends on 20th May? The procedure isn't at all clear.

colsten

beardiedog wrote: »

I opened their ISA FT deposit account with the £1000 deposit a couple of weeks ago. I'm not registered for their online or telephone banking at the moment so how do I add more money to the account before the 30 day grace period ends on 20th May? The procedure isn't at all clear.

Just send more money the same way you sent the £1,000.

beardiedog

colsten wrote: »

Just send more money the same way you sent the £1,000.

Thanks, a cheque it is then