Sharia Banking Experience

DarcySarto

Morning All
MSE highlights that AlRyan bank has a good 1 year fixed savings rate. Does anybody have any experience of this bank and/or sharia banking in general - either positive or negative?

masonic

Yes, these products are really no different in practice to other savings products. Have used Al Rayan and others regularly for years.

For fixed rates, they just carry a required break clause in which they could offer you a mid-term rate change with the option of you walking away penalty free with the accrued 'profit'. This is an extremely rare occurance.

eskbanker

DarcySarto said:

MSE highlights that AlRyan bank has a good 1 year fixed savings rate.

Be cautious if someone directs you towards something with this name, as it may be a low-cost Irish clone of the genuine Al Rayan bank....

To address your question less flippantly, many on here use them and their Sharia peers without issue, but I can't speak from direct experience myself.

Band7

I have had various accounts with Al Rayan for nearly a decade. More recently also with Gatehouse and Ahli. Never any problems.

DarcySarto

masonic said:

Yes, these products are really no different in practice to other savings products. Have used Al Rayan and others regularly for years.

For fixed rates, they just carry a required break clause in which they could offer you a mid-term rate change with the option of you walking away penalty free with the accrued 'profit'. This is an extremely rare occurance.

Ah I see your point! My own lazy fault for not spelling the name correctly!

DarcySarto

eskbanker said:

DarcySarto said:

MSE highlights that AlRyan bank has a good 1 year fixed savings rate.

Be cautious if someone directs you towards something with this name, as it may be a low-cost Irish clone of the genuine Al Rayan bank....

To address your question less flippantly, many on here use them and their Sharia peers without issue, but I can't speak from direct experience myself.

Ah I see your point! My own lazy fault for not spelling the name correctly!

pearl123

I've had accounts in the past with Al Rayan. No problems at all. I would use them again. 

Rollinghome

I've used Al Rayan for some years and the service is generally extremely good, though perhaps not quite as good as it once was, possibly due to reduced staff numbers.

All of my accounts have been instant access.  If profits are lower than expected, then they can reduce the rate, but that's no different to most other bank accounts. All but a few easy-access accounts rates are variable. Most of the exceptions seem to be regular savers.

With fixed rate accounts it's slightly different. With non-sharia banks, you would be entitled to receive the agreed fixed rate no matter what happens, or how far other rates fall.  With "expected profits" there isn't that same solid guarantee, and the bank's options aren't matched by the customer being able to choose to close the account midway.  So I'd look for an appropriately higher rate to compensate. 

DarcySarto

Rollinghome said:

I've used Al Rayan for some years and the service is generally extremely good, though perhaps not quite as good as it once was, possibly due to reduced staff numbers.

All of my accounts have been instant access.  If profits are lower than expected, then they can reduce the rate, but that's no different to most other bank accounts. All but a few easy-access accounts rates are variable. Most of the exceptions seem to be regular savers.

With fixed rate accounts it's slightly different. With non-sharia banks, you would be entitled to receive the agreed fixed rate no matter what happens, or how far other rates fall.  With "expected profits" there isn't that same solid guarantee, and the bank's options aren't matched by the customer being able to choose to close the account midway.  So I'd look for an appropriately higher rate to compensate. 

Worth considering - thank you.

tacpot12

Nest's Sharia fund is one of its best performing.

mark_cycling00

Fine by me and always received the indicated interest rate. 

It's like halal chicken is still chicken.

What goes on in the background is probably a bit of a grey area and a bit more like a normal savings product than you'd imagine. 
But if they were to be deemed to be non-sharia then a large population would no longer have access to these high interest products, so let's not dig too deeply