We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
Gatehouse Bank shariah-compliant ISA Expected Profit payments - where?

JB50MSE
Posts: 32 Forumite

Can the Expected Profit for a Gatehouse Bank cash ISA be compounded and retained within the ISA if monthly or annual EPR is selected (or only if I select payment on maturity)?
I am considering a 3, 4, or 5 Year Cash ISA with Gatehouse Bank (yes, they do 4 year ISAs even though for some reason MSE does not mention 4 year ISAs). MSE currently recommends cash ISAs with UBL and Gatehouse Bank (both shariah-compliant banks) but I'd like my Expected Profit to be retained within the tax-free ISA, so I can transfer the total balance, including Expected Profit (compounded?) out tax-free into whichever ISA I choose at the end of the term.
I'd prefer to see my Expected Profit added to my ISA account monthly, or at most annually just so I can keep an eye on what is happening. Gatehouse Bank seem reliable so far and they have an FSCS guarantee on the principal sum (not the EPR) which I can live with, but they are a young bank, started in 2007.
For another shariah-compliant bank, I see on the UBL website "Interest will be paid out to an account nominated by you at the time of account opening. This account must be in your name. Interest is not added to your principal amount at the selected frequency unless you have selected interest payment at maturity. UBL UK does not compound interest." which is clear enough for me to see it's not what I want, but I can't see the equivalent clarity on the Gatehouse Bank ISA T&C. Have I missed it?
I am considering a 3, 4, or 5 Year Cash ISA with Gatehouse Bank (yes, they do 4 year ISAs even though for some reason MSE does not mention 4 year ISAs). MSE currently recommends cash ISAs with UBL and Gatehouse Bank (both shariah-compliant banks) but I'd like my Expected Profit to be retained within the tax-free ISA, so I can transfer the total balance, including Expected Profit (compounded?) out tax-free into whichever ISA I choose at the end of the term.
I'd prefer to see my Expected Profit added to my ISA account monthly, or at most annually just so I can keep an eye on what is happening. Gatehouse Bank seem reliable so far and they have an FSCS guarantee on the principal sum (not the EPR) which I can live with, but they are a young bank, started in 2007.
For another shariah-compliant bank, I see on the UBL website "Interest will be paid out to an account nominated by you at the time of account opening. This account must be in your name. Interest is not added to your principal amount at the selected frequency unless you have selected interest payment at maturity. UBL UK does not compound interest." which is clear enough for me to see it's not what I want, but I can't see the equivalent clarity on the Gatehouse Bank ISA T&C. Have I missed it?
0
Comments
-
Gatehouse Bank - Yes they can. I have a 3 Yr ISA with them with monthly profit added to the account. I have always found them excellent.
I had an ISA with UBL in thd past but the interest cannot be compounded it pays out to nominated account. That suited me at the time. I also found ghen very good. They gave me a list of interest amounts and dates of payment for a year ahead.1
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 349.8K Banking & Borrowing
- 252.6K Reduce Debt & Boost Income
- 453K Spending & Discounts
- 242.8K Work, Benefits & Business
- 619.6K Mortgages, Homes & Bills
- 176.4K Life & Family
- 255.7K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 15.1K Coronavirus Support Boards