Al Rayan saving rate increase

PawelK

Just announced as of today the rate of 

Everyday Saver (Issue 3)

Is going up by 0.46% and is now 2.81%

Marginally better than the recent Santander.

Bigwheels1111

I know, My Santander account is looking empty now.

Filling Gatehouse as they are at 2.80% an Al Ryan has enough in it already.

PawelK

Good move although I'm not convinced I want to move my savings now from Santander to Al Rayan for a mere £9 extra over a year! 😅
Will wait few more weeks and hope someone breaks 3% on easy access.

jblore

Fairplay to Al Rayan, they've been very good at upping rates early. 
I had just opened with Santander too - haven't even had the letters through in the post 

Yellowman

Al Rayan's expected profit (interest equivalent rate of 2.81%) is only paid monthly.

Moneyfacts suggests that this rate is the same as the monthly rate.

EAR = gross monthly?

I am confused as, normally, gross monthly rates are a little less than EARs.

masonic

Yellowman said:

Al Rayan's expected profit (interest equivalent rate of 2.81%) is only paid monthly.

Moneyfacts suggests that this rate is the same as the monthly rate.

EAR = gross monthly?

I am confused as, normally, gross monthly rates are a little less than EARs.

AER should not equal gross rate for an account that pays monthly interest to the same account. 2.81% is the gross rate, so AER would be (1 + 0.0281/12)^12 - 1 = 2.85%

I think someone may have previously mentioned the inconsistency in the information at Moneyfacts

bristolleedsfan

Yellowman said:

Al Rayan's expected profit (interest equivalent rate of 2.81%) is only paid monthly.

Moneyfacts suggests that this rate is the same as the monthly rate.

EAR = gross monthly?

I am confused as, normally, gross monthly rates are a little less than EARs.

Only per annum rate is shown 
https://www.alrayanbank.co.uk/savings/everyday-saver-issue-3

Estimated balance after 12 months illustration works out at nearly 2.85%

Sensory

bristolleedsfan said:

Yellowman said:

Al Rayan's expected profit (interest equivalent rate of 2.81%) is only paid monthly.

Moneyfacts suggests that this rate is the same as the monthly rate.

EAR = gross monthly?

I am confused as, normally, gross monthly rates are a little less than EARs.

Only per annum rate is shown 
https://www.alrayanbank.co.uk/savings/everyday-saver-issue-3

Estimated balance after 12 months illustration works out at nearly 2.85%

Perhaps it would be better then if this board’s ToTP used AER regardless of whether a financial institution specifically quotes it.

At current rates, a quoted AER of 2.82% would take the top spot despite being less than Al Rayan’s 2.81% gross.

adindas

Al Rayan Everyday Saver requires a minimum balance of £5k to get the headlines interest. But its system does not seem to impose this rule. I have been observing this for sometimes now, also a few people have confirmed about this as well.

Their FPI, FPO is excellent for existing frequently paid payees