Now Al Rayan Bank has topped that with the launch of its new Everyday Saver account paying 1.6% – though as it’s a sharia account which follows Islamic banking principles, that’s an ‘expected profit rate’ rather than interest. The Everyday Saver account can be opened online, by phone or in branch with £500+. It was previously known as the Islamic Bank of Britain.
How do sharia savings accounts work?
The only big difference, as mentioned above, is that they pay an ‘expected profit rate’ rather than interest. Sharia accounts are open to anyone, of any faith, and follow a rule not to invest in areas like gambling and alcohol. Sharia accounts can beat top fixed-rate savings accounts too It’s relatively unusual to see an easy-access sharia account offer a higher rate than traditional easy-access savings accounts, but a number of sharia accounts offer market-leading fixed rates – though again, these are ‘expected profit rates’ rather than interest. BLME pays 2.1% EPR fixed for one year, 2.35% EPR for two years and 2.45% EPR for three years – all can be opened online with £1,000+.
That beats what’s offered by the top traditional fixed-rate savings accounts right now .
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