Al Rayan Bank

eskbanker

ashby6567 said:

Bigwheels1111 said:

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.

Expected profit, not excepted profit. And insofar no Islamic Bank has failed to pay out the said rate.

Not true - Al Rayan failed to pay out its expected rate on some of its accounts, albeit way back in 2008, when trading as IBB:

https://web.archive.org/web/20201111234815/https://www.alrayanbank.co.uk/media/37102/actualsavingsprofitratesjanuary2008.pdf

Band7

For their Everyday Saver, they state "If Al Rayan Bank changes the expected profit rate on your account, we will write to you providing you with enough notice to consider your options before the change takes effect." This is pretty much the same as you get with a non-islamic savings account.

masonic

Band7 said:

For their Everyday Saver, they state "If Al Rayan Bank changes the expected profit rate on your account, we will write to you providing you with enough notice to consider your options before the change takes effect." This is pretty much the same as you get with a non-islamic savings account.

While this almost goes without saying for its variable Everyday Saver, the statement would also apply to its fixed term products, which is not the same as non-Islamic equivalents. What they cannot do for any of their accounts is change the rate retrospectively for profit accrued but not yet paid.

ashby6567

eskbanker said:

ashby6567 said:

Bigwheels1111 said:

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.

Expected profit, not excepted profit. And insofar no Islamic Bank has failed to pay out the said rate.

Not true - Al Rayan failed to pay out its expected rate on some of its accounts, albeit way back in 2008, when trading as IBB:

https://web.archive.org/web/20201111234815/https://www.alrayanbank.co.uk/media/37102/actualsavingsprofitratesjanuary2008.pdf

Oh I see, however my "knowledge" was based on a certain Mr Martin Lewis's comment made on MSE Forum 12/09/2019

As MoneySavingExpert.com founder Martin Lewis wrote in this week's email, we've seen a series of rate drops among the top easy-access and fixed-rate savings accounts, with top easy-access payers Marcus and Cynergy both cutting the interest they pay to 1.45% AER last week.

Now Al Rayan Bank has topped that with the launch of its new Everyday Saver account, paying 1.6% – though as it's a sharia account which follows Islamic banking principles, that's an 'expected profit rate' (EPR) rather than interest. As a result, the rate isn't technically guaranteed – though Al Rayan Bank's always paid out on its 'expected rate' in the past, and it told us there have even been a few occasions where it's paid out more than its expected rate.

TomDolan

UK watchdog fines Al Rayan bank over money laundering control failures

https://www.reuters.com/world/uk/uk-watchdog-fines-al-rayan-bank-over-money-laundering-control-failures-2023-01-11/

Wheres_My_Cashback

TomDolan said:

UK watchdog fines Al Rayan bank over money laundering control failures

https://www.reuters.com/world/uk/uk-watchdog-fines-al-rayan-bank-over-money-laundering-control-failures-2023-01-11/

Peanuts compared to fines dished out to Lloyds, Barclays, HSBC, Nat West, TSB in the past 12 months. 

Nat West topped them all with a fine of £265 million after discount.

pafpcg

TomDolan said:

UK watchdog fines Al Rayan bank over money laundering control failures

https://www.reuters.com/world/uk/uk-watchdog-fines-al-rayan-bank-over-money-laundering-control-failures-2023-01-11/

It's taken them five (5) years to complete an investigation into whether the procedures at Al Rayan were adequate? 
How long would it have taken if the accused hadn't co-operated?

sultan123

Does this have any impact on current savings accounts in general with the bank

masonic

sultan123 said:

Does this have any impact on current savings accounts in general with the bank

It could impact future rates, but on the other hand a bank like Al Rayan will probably have a more active customer base than the big banks, so would need to stay competitive. It is unlikely to cause expected profit to be missed, as that would have an even more harmful impact on their ability to attract savings money.

pafpcg

sultan123 said:

Does this have any impact on current savings accounts in general with the bank

Al Rayan have known for five years that they had a liability and a potential fine from the FCA - they should have made provision.  See their accounts in their annual reports published since 2017 to see if they did.