sharia compliant accounts

eastmidsaver

hi there,
i am looking to take advantage of the HL active savings offer,  and have seen the best 6 month fix is BLME at 2% which is a sharia compliant account.  the next best is 1.85% with Kent.
i understand the sharia account is not interest, but expected profit rate and is not guaranteed (although i understand it is rare they don't meet it).
my question basically is,  if it is likely this rate will be achieved, does anyone have experience with this type of account  or would i be better off putting it in Kent instead?
thanks.

Aviator1194

I notice Atom Bank have 12 month Fixed at 2.6%
I'm waiting just for a short while in case it climbs before I put my wad in :-)

eastmidsaver

i am expecting it to climb within next few months which is why i just want a 6 month fix for now.   when combined with the £20 cashback HL are offering,  it seems a pretty good deal for now without locking away for too long.

masonic

I've used BLME many times, going direct rather than through HL active savings or similar. I have had a good experience each time (they have always paid the expected rate). There is never any risk that accrued profit will be less than you were expecting, but they are able to vary the rate during the term, and you are able to break the fix if they do (though if you are on for an incentive, that could be put at risk if you did). I would think it very unlikely indeed that the rate would not be honoured over such a short term, and with rates rising across the board.

eastmidsaver

thanks for your input,  it definitely is something to think about.  i think the deadline is tomorrow and not sure if i'll have my funds by then (as withdrawing from another account).   

masonic

eastmidsaver said:

thanks for your input,  it definitely is something to think about.  i think the deadline is tomorrow and not sure if i'll have my funds by then (as withdrawing from another account).   

The deadline was 30th June for opening an active saver account. You have 60 days from account opening to actually fund a savings product.

See https://www.hl.co.uk/features/cashback

eastmidsaver

yes that is true,  i mean the BLME offer is only until tomorrow to invest in it via HL.

masonic

eastmidsaver said:

yes that is true,  i mean the BLME offer is only until tomorrow to invest in it via HL.

It's standard practice (though no guarantee) for the rates to be advertised as being available for just a few days, but for them to be extended just before expiry.

Their 2 year fix @ 3% was launched in early June with an original expiry date of 15th June (source), but it is still available today and now showing as "Apply by 10/07/2022".