Bank boosts rates on two savings accounts up to competitive 5.72%
Al Rayan Bank has increased the rates on two savings accounts, remaining competitive with the market.
As the choice for competitive savings accounts grows, Al Rayan Bank has increased the Expected Profit Rate (EPR) on two accounts to offer savers higher returns.
Al Rayan Bank’s Everyday Saver Three (EDS3) and 12-month Fixed Term Deposit (FTD) products are now offering EPRs of four percent and 5.72 percent respectively.
The Everyday Saver Three and 12-month FTD accounts both require a minimum deposit of £5,000 but as they are different account types, withdrawal terms vary.
The Everyday Saver Three is an easy access account and allows withdrawals to be made by customers as often as needed, subject to daily maximum withdrawal limits.
For the 12-month fixed term saver, no withdrawals can be made until the end of the term, which is typical of fixed savings accounts.
Instead of paying interest to savers, Al Rayan Bank invests customers’ deposits in ethical, Sharia-compliant activities to generate a profit.
While profit rates are expected, Al Rayan Bank has said it has always paid at least the profit rate it has quoted to its customers since it was founded in 2004.
Profit for the Everyday Saver Three is calculated daily and paid to the account on the last working day of each calendar month.
For the 12-month FTD, profit is calculated monthly and can either be paid quarterly to a nominated account or reinvested into the lump sum and paid upon maturity.
Don't miss...
Pensioner loses £268,000 life savings in ‘very compelling’ fraud tactic [INSIGHT]
New savings account smashes rivals paying 5.85% - rates to hit 6% in days [ANALYSIS]
Pensioners could see their state pension rise to £220 each week [EXPLAINED]
When paid to a nominated account, the EPR is 5.61 percent, when reinvested into the lump sum the EPR is 5.72 percent.
Both accounts can be opened through Al Rayan Bank’s Digital Banking app or online. Applicants must be over the age of 16 and up to £1million can be invested overall.
The Bank is also a member of the Financial Services Compensation Scheme (FSCS), which guarantees protection for eligible depositors’ savings up to £85,000.
But while Al Rayan Bank is offering more competitive returns to savers, there are other accounts offering higher rates for these account types.
According to Moneyfactscompare.co.uk, Newcastle BS’ Newcastle Base Rate Tracker (Issue One) is offering the highest returns for an easy access account with an Annual Equivalent Rate (AER) of 4.3 percent.
The account can be launched with a minimum deposit of £1 and interest is paid on the anniversary of opening.
Up to £250,000 can be invested overall and there is no limit to the number of deposits or withdrawals.
For 12-month savers, SmartSave’s One Year Fixed Rate Saver takes the lead with an AER of 5.86 percent.
The account can be opened with a minimum deposit of £10,000 and accrues daily and is paid on maturity. Up to £85,000 can be invested overall and withdrawals are not permitted.
