Seeking Advice: Switching to Sharia Compliant Bank Account

[nunon101]

Asalaamu'Alaikum,

I'm considering closing my current conventional UK-based bank account and opening a Sharia compliant bank account. I'm seeking advice on the best options for Sharia compliant current and savings accounts that offer the best returns.

Currently, I have a mortgage with Al Rayan, so it would be straightforward to open an account with them. However, I've also come across Gatehouse Bank, which offers a saver's account with a promising 7% return rate.

Additionally, Isbank has a 4-year fixed savings rate of 4.5%, which seems appealing.

Since my mortgage has a fixed rate until the end of 2026, I'm looking to maximise my savings to pay off a bigger lump sum at the end of 2026.

Any advice or recommendations would be greatly appreciated. Thank you in advance!

 

[brievah]

@nunon101 W/S,

I would suggest you open accounts with both if possible or atleast a current account with alrayan to get feel for their customer service as can be hit or miss but I beleive they have a monthly account fee for current accounts.

We have both a fixed saver with alrayan which pays quarterly profit, and a isa with gatehouse which adds monthly variable profit to account.

Gatehouses online website is easier to navigate etc, but both working well for us so far bene going about 4 months.

Also Al rayan seems to be edging away from retail banking market and going towards high net worth individuals so not sure how much longer they will continue to offer these retails accounts with nominal entry requirements in terms of cash etc could be a factor if you will be going for few years with whichever option.

 

[nunon101]

@brievah Thank you for the information.
Which bank do you use for your current account?

 

[i3gman]

@nunon101 Does Al Rayan charge for savings accounts?

 

[resjudicata]

@i3gman Fees are listed here

 

[i3gman]

@resjudicata From what I can understand from the document and what I’ve seen on the internet. I couldn’t find anything about fees for savings accounts only. The only fees I could see were for current accounts.
Would that be correct?

 

[resjudicata]

@i3gman Sorry i misread your message. Those fees are for current accounts. I too can't see any fees for saving accounts.

 

[brievah]

@nunon101 I use a few like to seperate out funds so know exactly where I stand, mainly use monzo for most day to day transactions. Also they don't pay interest which is a plus atm.

 

[tschief]

@nunon101 Sorry for the ignorance here, but you say they give you 7% returns, where are these returns coming from? How on earth are these banks guaranteeing these returns?

 

[nunon101]

@tschief Whilst it is variable its on their website

 

[donnyb]

@tschief There are some limits to the 7% account.

“Our Regular Saver account is designed for individuals who wish to save regularly up to £300 per month and don’t require access to their funds for a 12 month period.”

https://www.gatehousebank.com/personal/savings/regular-saver/our-regular-saver-account

 

[goobiebean]

@nunon101 Sorry for being misinformed but how is this return rate any different to interest? Genuinely interested as I currently hold in Santander and if I can switch to a halal alternative that would be amazing