MSE News: New sharia account offers 1.6% easy-access savings - but should you get it?

grnglide

But if you had a fixed term deal with IceSave you could opt to leave the money with them and you got the full amount with interest at the end of the period!


Why would anyone not take this option?

Malthusian

neil324 wrote: »

Does the FSCS pay accrued 'Profit' and the deposit or only the deposit in the case of bank failure?

The FSCS should pay the accrued profit up to the insolvency as that's what the bank owes you, assuming the profit has actually been accumulated on a regular basis.

Otherwise those who had their profit paid out to them would get more back than those who had rolled up the profit.

Unless it takes you over the limit. In other words if you deposit £85,000 and roll up the profit, the FSCS will only pay out £85,000.

colsten

bail-in wrote: »

Link to Al Rayan bank offers: savings-account-comparison-table.pdf

https://www.islamic-banking.com/explore/islamic-finance/shariah-rulings/question-answers-shariah-rulings/mudarabah

The above link defines the mudarabah Shariah ruling which applies to the Al Rayan instant access savings account 1.6% EPR. Note in the mudarabah account types 100% of capital invested by the bank is at risk and all losses are passed on to the lenders customers, the depositors. That is a legal relationship, contract. However, depositors are protected by the promise of the FSCS up to £85,000 covered in case of receivership of the bank. Yep, just a promise. No enforceable legal relationship there between the depositor and the FSCS, the PRA and the BofE. It is doubtful our nationally indebted government banking protection scheme, the FSCS, could bail-out systemically important UK bank failures. Hence the 2016 bail-in toolkit rule. I like the Islamic Shariah morally linked banking rules re investment and risk, somewhat similar to the earlier Christian Church law. Shariah banks as a result weathered the 2008 crisis very well compared to other banks. Unlike many other countries, not from want of trying, including the USA, the UK have BofE ring fencing since 1st January 2019 to protect our deposits in the retail arm from losses in the investment arm of the bank. However, it only applies to a few of the retail banks determined by capital holdings, including: HSBC, Santander, Nat West, Barclays, Lloyds, RBS.

The FSCS is not a "nationally indebted government banking protection scheme". Please do your research, starting here: https://www.fscs.org.uk/about-fscs/ and stop scare mongering. Personal deposits at Al Rayan are fully protected under FSCS, up to £85K

colsten

d63 wrote: »

i received a paying-in book for my al rayan easy access account today, (well 2 paying-in books actually -- see my previous post #64) but instead of the sort code being al rayans 30-00-83 which i use for sending the faster payment transfers, the code is 30-00-00 for a lloyds bank collection account.
any idea what's going on here?

I am using 30-00-83 for the faster payments into my Everyday Saver. There must be a reason why they also have 30-00-00 - best to ask them.

KTF

Mine arrived in the post a few days after opening the account.

Sea_Shell

Weekend payments seem sluggish. I requested a withdrawal at 7.30 this morning, still not arrived.

Anyone else notice this?

HonestJohn

I have never seen an application for a savings account ask so many questions. The only thing they don't need to know is your inside leg measurement. Decided it was too instrusive.

quirkydeptless

HonestJohn wrote: »

I have never seen an application for a savings account ask so many questions. The only thing they don't need to know is your inside leg measurement. Decided it was too instrusive.

I'd be happy to give my inside leg measurement for an extra 0.1%

nick1234

I wouldnt risk it you dont know where your funds are going

Sea_Shell

Sea_Shell wrote: »

Weekend payments seem sluggish. I requested a withdrawal at 7.30 this morning, still not arrived.

Anyone else notice this?

Still not here...I guess technically, they've got until close of business Monday, but just be aware that weekends are not "faster" payments!!

Well not for me, anyway.

My money's in limbo...as they've deducted it from my balance.