EXPIRED: Gatehouse Bank/Raisin UK offering 2% AER on 12 month fixed term accounts plus £50 bonus

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  • bristolleedsfan
    bristolleedsfan Posts: 12,092 Forumite
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    Nice find O/P :beer:
  • Alexland
    Alexland Posts: 9,653 Forumite
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    masonic wrote: »
    They monitor the "profit" daily and if they need to reduce it, you'll be notified and have the option to exit the fix penalty free with accrued "profit".

    Is it even possible for a business to accurately calculate profit daily given many costs will be less frequent? Last time I saw anything like that was the Lemonade Stand game on the Apple II computer. Let's hope it's a hot day. I've decided to give this offer a miss as £50 isn't a big enough incentive to tie up £1k into next tax year.

    Alex.
  • Shedman
    Shedman Posts: 1,495 Forumite
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    Whilst I appreciate the risk of having an intermediary in the equation I have gone for this. I'll live with the risk on my £1000...after all I invested in BT so clearly I like to live dangerously :-(
  • masonic
    masonic Posts: 23,278 Forumite
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    Alexland wrote: »
    Is it even possible for a business to accurately calculate profit daily given many costs will be less frequent? Last time I saw anything like that was the Lemonade Stand game on the Apple II computer. Let's hope it's a hot day. I've decided to give this offer a miss as £50 isn't a big enough incentive to tie up £1k into next tax year.
    Of course it isn't, which is why I wrote "profit" and not profit. Remember, to be sharia compliant, they can't call it interest.

    The bank can earn "profit", for example from helping a customer buy a property and they can share some of that "profit" with other customers by paying them a rate of "profit" on their savings. If they make changes to the rate of "profit" they pay on your account, then you will receive advanced notice of the change and it won't affect any "profit" already accrued.

    If you are not interested in being sharia compliant, then you can safely replace every instance of "profit" with interest in the above paragraph and it will probably seem very familiar.
  • veryintrigued
    veryintrigued Posts: 3,843 Forumite
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    Thanks Karlie
  • karlie88
    karlie88 Posts: 9,114 Forumite
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    Deneb wrote: »
    From their own website:

    The profit we share is the expected profit rate at the time you open your account. We monitor your account on a daily basis to ensure the expected profit rate will be achieved. If we believe the expected profit rate will not be achieved, we will contact you giving you notice of the new expected profit rate. You will then have the option to continue your account with us at the new rate, or close your account immediately with your original deposit returned, along with profit earned.

    To date, Gatehouse Bank has always managed to pay its customers the expected profit rate.

    AER offered is the Annual Equivalent Rate and it shows you what the gross rate would be if profit was paid and compounded each year.
    masonic wrote: »
    They monitor the "profit" daily and if they need to reduce it, you'll be notified and have the option to exit the fix penalty free with accrued "profit".

    Feel free to correct me, but I think the Raisin Issue is slightly different (compared to the actual Gatehouse Bank issue) in that the 2% is truly a fixed rate.

    Within the Key Product Information it states:
    Can Gatehouse Bank change the profit rate? No, the profit rate applicable to your deposit is fixed at the time of application and will stay the same throughout the duration of the fixed term.

    I've been looking for somewhere to house my BoS Vantage funds with the rate going down to 1.5% in the next few weeks. Don't really mind a short term fixed account seeing as I haven't touched the funds in BoS Vantage for a few years. Gatehouse Bank was on top of my list - so this offer has come along at quite a good time.
    :grouphug: :D Official MSE canny forumite and HUKD VIP badge member :D :grouphug:
  • dumbdodo
    dumbdodo Posts: 4 Newbie
    edited 11 June 2018 at 3:12AM
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    I have a "spare" £50,000 lying in Barclays, it's been there for a few years earning 0.0% in a current account. I would like to put £25,000 in the Gatehouse Bank for the 2% at the 1 year fixed bond.

    Would you guys be comfortable putting such a large amount in a institution like Gatehouse which I'd never heard of before??? I should be OK with the FSCS protection, right?

    Thanks
  • masonic
    masonic Posts: 23,278 Forumite
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    karlie88 wrote: »
    Feel free to correct me, but I think the Raisin Issue is slightly different (compared to the actual Gatehouse Bank issue) in that the 2% is truly a fixed rate.
    Yes, it does appear to be a true fixed rate, but I get the impression Gatehouse cannot say that if they want it to be sharia compliant.
  • Zanderman
    Zanderman Posts: 4,684 Forumite
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    dumbdodo wrote: »
    I have a "spare" £50,000 lying in Barclays, it's been there for a few years earning 0.0% in a current account. I would like to put £25,000 in the Gatehouse Bank for the 2% at the 1 year fixed bond.

    Would you guys be comfortable putting such a large amount in a institution like Gatehouse which I'd never heard of before??? I should be OK with the FSCS protection, right?

    Thanks

    Yes, you should be ok with fscs protection. But for that sum I'd go direct to Gatehouse, not via Raisin as there is a (slight) risk whilst the money is held temporarily by raisin's intermediary before it gets to Gatehouse.

    But there are many other options for getting better than you are in Barclays. I'd suggest if you're seriously looking to home £25-50k you should look at all the savings (and maybe investment) advice on the main MSE site first.

    Btw Atom Bank, who you may not have heard of either, also offer 2% on 12 months at the moment. Probably easier to use than Gatehouse. But app-based.
  • Deneb
    Deneb Posts: 420 Forumite
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    edited 11 June 2018 at 9:01AM
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    Zanderman wrote: »
    Yes, you should be ok with fscs protection. But for that sum I'd go direct to Gatehouse, not via Raisin as there is a (slight) risk whilst the money is held temporarily by raisin's intermediary before it gets to Gatehouse.

    But there are many other options for getting better than you are in Barclays. I'd suggest if you're seriously looking to home £25-50k you should look at all the savings (and maybe investment) advice on the main MSE site first.

    Btw Atom Bank, who you may not have heard of either, also offer 2% on 12 months at the moment. Probably easier to use than Gatehouse. But app-based.

    If, like me, you're only putting £1K in for the £50 bonus, the effective rate with Gatehouse/Raisin is 7% on the original deposit if it all works out. It's a relatively low risk way to make that sort of "interest" compared to other options and I think it's worth a punt for me.


    My cash savings are diversified across quite a few different products, BTW. I don't have £50K or anywhere near that with any one institution.
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