The Top Fixed Interest Savings Discussion Area

Steve_xx

baldeagle09 said:

How safe are sharia accounts?
I notice that Al Rayan have a 2 yr fixed bond at 4.62% and a 1 yr bond at 4.50% (Expected Profit)
However on MSE they are excluded from the top standard rates but are included as 'non-standard' accounts.
I note that they are covered by  FSC scheme up to £85,000
Is perhaps the expected profit not covered by FSCS?
Just makes me slightly wary of investing with them even though they are listed in other comparison sites.
This is money has the addendum - 'This rate is the 'expected profit rate' under Sharia compliant accounts. The bank monitors the target profit on a daily basis to ensure achievability.'
Have many people had experience of the operation of these accounts?

They are as safe as any other FSCS protected account. I've used Al Rayan for years, without problem. Similarly I've used Gatehouse and State Bank of India, as well as BLME (Bank of London & Middle East. All have been fine.

janusdesign

baldeagle09 said:

How safe are sharia accounts?
I notice that Al Rayan have a 2 yr fixed bond at 4.62% and a 1 yr bond at 4.50% (Expected Profit)
However on MSE they are excluded from the top standard rates but are included as 'non-standard' accounts.
I note that they are covered by  FSC scheme up to £85,000
Is perhaps the expected profit not covered by FSCS?
Just makes me slightly wary of investing with them even though they are listed in other comparison sites.
This is money has the addendum - 'This rate is the 'expected profit rate' under Sharia compliant accounts. The bank monitors the target profit on a daily basis to ensure achievability.'
Have many people had experience of the operation of these accounts?

the EP will be included (if already paid, e.g monthly) if the balance is £85k or less.

I have a number of fixes with Gatehouse (another Sharia bank) with no problems whatsoever... one of them is 5-Yrs, so i'll be with them for many years yet.... also had no problems with Al Rayan with regards to their EA account.

I would have no hesitation funding an Al Rayan fix today if I had the available funds.

https://www.raisin.co.uk/banking/expected-profit-rate/

Investments made by the bank are closely monitored by experts within the bank to ensure that they will provide the expected profit rate you were quoted. There are very few circumstances where the bank has been unable to meet the EPR, with certain institutions even making more profit than expected and paying out more than anticipated. 

Due to the very nature of expected profits being expected and not guaranteed, there is always a small amount of risk. Deposits with banks that hold a UK banking license are protected by the Financial Services Compensation Scheme up to £85,000 per person, per banking group, which will ensure that your initial deposit is safe. 

I don't think any UK Sharia bank has ever failed to meet the ER - but even if they couldn't, they would give you access to the deposit.

intalex

intalex said:

No one trying to jump off the page on 2+ year fixes so far...

Come on Gatehouse, Atom, Paragon, Shawbrook, Ford, Hodge... step it up on the 2+ year non-ISA fixes... or the ISAs will soak it all up...

SickGroove

Charter Savings Bank...

1 Year Fixed Rate Bond Annually 4.46% / Monthly 4.37% Gross

2 Year Fixed Rate Bond Annually 4.50% / Monthly 4.41% Gross

I have a one year £80K fix maturing in a few weeks with them so hopefully I'll receive my maturity options email soon...

I'm looking at 3 year laddering system, so can I split some of my funds into the above 1 & 2 year fixes and put the remaining funds in a 3 year fix elsewhere? Ie can have have two different bonds with the same provider?

refluxer

@SickGroove Yes, you can have as many bonds with the same provider as you like. Be sure to leave a generous headroom for interest so that you can stick within the £85k FSCS limit.

cricidmuslibale

SickGroove said:

Charter Savings Bank...

1 Year Fixed Rate Bond Annually 4.46% / Monthly 4.37% Gross

2 Year Fixed Rate Bond Annually 4.50% / Monthly 4.41% Gross

I have a one year £80K fix maturing in a few weeks with them so hopefully I'll receive my maturity options email soon...

I'm looking at 3 year laddering system, so can I split some of my funds into the above 1 & 2 year fixes and put the remaining funds in a 3 year fix elsewhere? Ie can have have two different bonds with the same provider?

@SickGroove Yes, you can definitely put some of your funds into the above 1 and 2 year fixes and then put the remaining money into a 3 year fix with another savings provider. And yes, you can certainly have two different bonds with the same provider; e.g. right now I have five different fixed rate bonds (and one fixed rate cash ISA) with Coventry Building Society.

Just to add that the minimum interest-earning balance for the two Charter Savings Bank Fixed Rate Bonds mentioned above is £5,000 and the maximum balance is £1,000,000.

Charter are currently also offering the option of an 18 Month Fixed Rate Bond (with the same minimum and maximum balances) paying either 4.39% gross monthly interest (4.48% AER) or 4.48% gross annual interest (4.48% AER).

flobbalobbalob

refluxer said:

@SickGroove Yes, you can have as many bonds with the same provider as you like. Be sure to leave a generous headroom for interest so that you can stick within the £85k FSCS limit.

With Charter, you can opt to have your monthly interest paid into your nominated account 👍

Sea_Shell

Pondering what accounts will still be available (or become available) for a sum I have maturing on 11th April.

Have opened Shawbrook 1 yr at 4.44%  (and have funded with some spare cash), but want to be able to put another chunk away.

Hope that stays available for long enough...who knows.     Just have to go with the flow.     

At least something will be better than the 1.7% the money is 'enjoying' at the moment! 

2010

Last year when rates started to rise, myself like many others were stuck in really low rates which we had only just fixed.
We had to bite the bullet as rates continued to rise but now a lot of these fixes are coming to an end and the rates are hovering at their peaks.
What goes around comes around.

jaypers

Big fan of Charter and after a few 1 year fixes I’m also starting to look at 2 year ones. Good timing.