Raisin & Sharia law (Wakala fee)

Ecnurev

Hi all,

I have been planning to put some money in one of the savings products offered in Raisin UK.

I have good references about Raisin in Spain. However, when checking the products currently available in Raisin UK most of the ones I am interested in are complying with Sharia law, and that's when I get lost. I am not muslim, so I am not really interested on knowing about the meaning of those fees. I would just like to confirm that if the platform says that the interest rate is 2.00%, that is what I am going to get.

To be more specific, there is the "Wakala fee". This is what the Terms and Conditions say about that Wakala fee:

• We shall be entitled to the Wakala fee and we shall be entitled, as an incentive, to retain any profit generated by investing your Deposit Amount exceeding the Expected Profit Rate.
• We will waive our Wakala Fee with you of GBP100.

From there I understand that if they make more interest that the promised 2.00%, they will keep the excess. Am I right?
I find the second clause harder to understand, so I'd appreciate some guidance.

Thanks very much.

masonic

They are telling you that you'll get the stated rate but no more, and the second point is that they won't charge the other fee.

In essence these are just fixed rate accounts with the theoretical possibility that you might be faced with the choice of either ending the fix early or accepting a rate reduction mid-term.