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  • FIRST POST
    • SweepDog
    • By SweepDog 12th Feb 19, 10:06 AM
    • 5Posts
    • 0Thanks
    SweepDog
    Fixed Rate Bond
    • #1
    • 12th Feb 19, 10:06 AM
    Fixed Rate Bond 12th Feb 19 at 10:06 AM
    I have been trying to take out a fixed rate bond through Raisin and Gatehouse Bank PLC.

    Been a traumatic 2 weeks as my money has only appeared in the account yesterday and now they are saying the original rate of 2.17 has been withdrawn and I have to apply again.

    On their dashboard there are various options of bonds and the one I want to take out is again through Gatehouse at 2.10 fixed rate for 12 months. However I am concerned with a paragraph under 'important information' and I wondered if someone could explain it too me and its risks.

    "This account is administered by Meteor Asset Management and Meteor Investment Management who process your application and cash respectively. Cash and deposits are held in trust where you remain the beneficial owner. All balance and transaction data is provided by Meteor Asset Management, acting as Bare Trustee. Sharia Banking - Make good offer refusal: Sharia-compliant banks can make good the amount of any shortfall that you may have suffered if your deposit amount returns a loss. You shall therefore be entitled to receive payment from these banks of the full amount that you had previously deposited through applications completed on Raisin UK. You are entitled to refuse this offer. You can do this by sending an email to service@raisin.co.uk with the subject “Make good opt out”. If you do not refuse this offer, you shall therefore be entitled to receive payment from the bank for the full amount that you had previously deposited. We would like to draw your attention to the guidance offered by each bank’s Sharia Supervisory Board. The guidance is that if the bank needs to make good the amount of any shortfall (set out above), this will not comply with Sharia principles."

    thanks in advance
Page 1
    • dunstonh
    • By dunstonh 12th Feb 19, 11:02 AM
    • 97,058 Posts
    • 65,047 Thanks
    dunstonh
    • #2
    • 12th Feb 19, 11:02 AM
    • #2
    • 12th Feb 19, 11:02 AM
    However I am concerned with a paragraph under 'important information' and I wondered if someone could explain it too me and its risks.
    What about it concerns you?
    Are you Muslim and the fact it could be non Sharia compliant?
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • SweepDog
    • By SweepDog 12th Feb 19, 11:49 AM
    • 5 Posts
    • 0 Thanks
    SweepDog
    • #3
    • 12th Feb 19, 11:49 AM
    • #3
    • 12th Feb 19, 11:49 AM
    My concern is that had thought I was taking out a fixed rate bond but the statement appears to say that that could change during the 12 months
    • Prism
    • By Prism 12th Feb 19, 2:44 PM
    • 686 Posts
    • 550 Thanks
    Prism
    • #4
    • 12th Feb 19, 2:44 PM
    • #4
    • 12th Feb 19, 2:44 PM
    Have you read up on Sharia accounts?

    https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/#sharia
    • Spiggle
    • By Spiggle 12th Feb 19, 3:21 PM
    • 1,751 Posts
    • 14,201 Thanks
    Spiggle
    • #5
    • 12th Feb 19, 3:21 PM
    • #5
    • 12th Feb 19, 3:21 PM
    Putting on my armour now! I opened the one year fixed rate bond with Gatehouse Bank and it was simplicity itself. Paid deposit one day it was on my Gatehouse account the next day. Furthermore, the people at the end of the phone were really helpful. Now to dent my armour with all the arrows - I did not and would not go through raisin as an intermediary.

    I just didn't feel at my level of deposit (£10k) the financial enticement - sorry inducement - was sufficient to confuse the issue and have money moving from one institution to another and then to Gatehouse eventually. Too much complication for too little reward.

    It appears that the 'Important Information' is about and from raisin rather than to do with Gatehouse/Sharia banking.

    No, I'm not Muslim but fully comprehend the Sharia banking system.

    All the best,
    Spigs
    Mortgage Free October 2013
    • andi2
    • By andi2 12th Feb 19, 7:37 PM
    • 687 Posts
    • 815 Thanks
    andi2
    • #6
    • 12th Feb 19, 7:37 PM
    • #6
    • 12th Feb 19, 7:37 PM
    If you go directly to Gatehouse it tells you that the rate isn't guaranteed, however they have never yet paid out below what they have said.


    It also says that if it looks like they won't be able to pay the initial rate they will tell you & release your money (with profit to date) if you're not happy with the new rate.


    I didn't look at them via Raisin, but I didn't have any issues with the T&Cs going directly with them.



    https://gatehousebank.com/personal/savings/fixed-term-deposits/1-year-fixed-term-deposit
    Smile and be happy, things can usually get worse!
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