Al Rayan Bank

sultan123

Has anyone kept money in Al Rayan Bank Everyday Saver (Issue 3).

It does not seem to give you interest as such? 

Listed as a good option on Maetin blog. 

Band7

I have money in that account. They pay profit every month, calculated from the expected profit rate advertised. You can treat this like your treat interest - HMRC does.

sultan123

Band7 said:

I have money in that account. They pay profit every month, calculated from the expected profit rate advertised. You can treat this like your treat interest - HMRC does.

Thanks for coming back. It is quite a safe investment then? Guessing you can close account whenever you want to?

Band7

It's not an investment, but savings. Investments involve buying funds and stocks. Savings are just keeping your money in cash. As long as the account is covered by FSCS, which the Al Rayan Everyday Saver is, your money is safe up the £85,000. It is an instant access account, and you can withdraw up to £20,000 per day. 

Bigwheels1111

It’s the same as any other savings account, just called profit instead of interest.
So far no excepted profit bank has failed to pay out.
Very safe.

Band7

Sorry, not instant access but easy access. You get your money within 20-30 minutes on working days. No withdrawals at weekends and bank holidays.

sultan123

Thank you. So does it count towards personal savings allowance in same way?

E.g. high tax payer £500 free

sultan123

Band7 said:

Sorry, not instant access but easy access. You get your money within 20-30 minutes on working days. No withdrawals at weekends and bank holidays.

And its unlimited withdrawals with no change in rate or penalties?

sultan123

Also if one was to want to close account guessing would be straight forward?

Bigwheels1111

sultan123 said:

Also if one was to want to close account guessing would be straight forward?

Very easy, take out your money.
Leave £1 in the account.
I don’t close accounts like this just in case.
Its a cheap and time saving.
Rather than registering again in the future.

Choirgrl

sultan123 said:

Thank you. So does it count towards personal savings allowance in same way?

E.g. high tax payer £500 free

Yes, HMRC treats the expected profit in the same way as interest.

sultan123 said:

Band7 said:

Sorry, not instant access but easy access. You get your money within 20-30 minutes on working days. No withdrawals at weekends and bank holidays.

And its unlimited withdrawals with no change in rate or penalties?

The rate drops if you have less than £5k in the account, but there is no limit on the number of withdrawals.