Savers looking for higher returns see fixed rate offers continuing to rise.
This week, the challenger banks, QIB (UK) and Tandem once again increased their fixed rate bonds.
QIB (UK) now offers 1.4% fixed rates for one year. However, it is available on Raisin savings platform with a £ 50 bonus, which can drive the rate up to 1.9 percent.
It requires £ 10,000 to open. QIB is an Islamic bank that provides financial services compensation scheme protection and is fully licensed by the Prudential Regulatory Authority.
Savers who deposit £ 10,000 or more with QIB (UK) through the Raisin savings platform will be eligible for a welcome bonus of £ 50.
QIB has also increased the prices of all its fixed rate offerings – its 18-month contract is now the market leader at 1.5%, while its two- and three-year contracts, paying 1.7 and 1.77 respectively. %, also top the best buys ranking. .
Tandem Bank also raised its one-year fixed rate contract to 1.41%, becoming the market leader while its two-year and three-year contracts, paying 1.67% and 1.76% respectively, fall. just below the top.
It also currently has the best easy-to-access buy rate in our tables.
|Account type (minimum investment)||0% tax||20% tax||40% tax|
|Tandem Bank (£ 1 +)||1.41||1.13||0.85|
|QIB (United Kingdom) (£ 1,000 +)||1.4||1.12||0.84|
|Zopa Bank (£ 1,000 +)||1.40||1.12||0.84|
|QIB (United Kingdom) (£ 1,000 +)||1.50||1.20||0.90|
|Chartered savings bank (£ 5,000 +)||1.38||1.10||0.83|
|United Trust Bank (£ 5,000 +) (4)||1.35||1.08||0.81|
|QIB (United Kingdom) (£ 1,000 +)||1.70||1.36||1.02|
|Tandem Bank (£ 1 +)||1.67||1.34||1.00|
|Zopa Bank (£ 1,000)||1.67||1.34||1.00|
|QIB (United Kingdom) (£ 1,000 +)||1.77||1.42||0.06|
|Tandem Bank (£ 1 +)||1.76||1.41||1.06|
|Zopa Bank (£ 1,000 +)||1.76||1.41||1.06|
James Blower, Founder and Acting Director of Savings at The Savings Guru, said: “The new QIB (UK) rates on Raisin are very good, especially if you factor in the bonus as well.
“There is certainly no way a saver would get 1.9% on £ 10,000 on a one-year fix in the regular savings market anytime soon, so I would definitely tell savers that this deal Raisin is worth a visit. ”
There have been more than 400 fixed rate hikes since the start of last month as banks vie to dominate the best buy tables, according to research from the Savings Champion website.
Last Monday, the first places in two and three years changed hands respectively four and five times during the day.
Who are QIB France?
QIB (UK) is the UK branch of Qatar Islamic Bank and has been operating in Britain since 1982 after obtaining its full banking license in 2008.
The bank claims to be the largest Islamic bank with a 42 percent share of the Islamic banking sector.
Headquartered in London, QIB (UK) offers Sharia-compliant financing and investment products for both Islamic and non-Islamic clients.
It won the UK’s National Banker Award for Best Islamic Bank, which sparked increased interest from non-Islamic clients.
In addition to its range of savings products, it provides private banking services and structured real estate finance in the UK, and has been fully authorized by the Prudential Regulation Authority and regulated by the FCA and PRA.
It is a member of the Financial Services Compensation Scheme (FSCS), which means those with current and savings accounts with the bank are covered up to £ 85,000 or £ 170,000 if held in an account. attached.
Islamic banks like QIB UK are prohibited from earning interest or benefiting from lending or borrowing money – instead, the rate offered is an “expected rate of profit”.
Islamic banks therefore operate slightly differently in that they do not charge interest and savers cannot earn interest in the traditional sense.
Rather, the money you earn on your savings comes from the expected profits of the bank by investing your money in various projects, rather than interest.
The expected profit is a problem for some savers because it is not guaranteed.
James Blower said: “It is not that savers risk sharing the losses – if the rate of profit cannot be achieved then the bond is canceled and repaid with the expected profits realized to date.”
This means that the saver will not lose a QIB UK but could lose in the market, according to Blower.
Blower says, “For example, if you struck a one-year, 1.30% Sharia deal last summer and it failed to meet its expected profit in March and therefore decided to pay your principal and expected profit so far, you “I went to the market to save again, but this time with rates at 0.56 percent – so you couldn’t have locked yourself in with a rate of guaranteed interest.
“This is the main reason some people shy away from these deals because of this lack of certainty – while some savers are comfortable with expected rates of profit, rather than fixed interest, not all are.
“Although it is worth mentioning that all Sharia banks have always paid according to the contract to this day.”
What are raisins?
Raisin is a savings platform that allows customers to open multiple savings accounts with multiple providers, without having to go through a full app every time they open a new account through this platform and track how much they have where through many sites online. or paper statements.
This means that with just one online account, you can open multiple savings accounts with many different banks as and when you need them without having to fill out and administer the usual form.
Using Raisin is free and currently offers savers a choice of 52 savings offers from 13 providers.
Its savings offerings include fixed rate bonds, easy access accounts and notice accounts.
His £ 50 welcome bonus only applies to the client’s first savings account at Raisin and requires a minimum deposit of £ 10,000 to be made into a savings account for a period of six months or more.
James Blower, of The Savings Guru, said: “There are only a limited number of banks on the platform and therefore they don’t always have access to the best rates.
“On the plus side, once you’ve set up an account with Raisin, you don’t need to keep providing your details and opening new accounts with each provider, which you do if you move savings to the market in general.
“They are certainly worth a visit and I think we will see these savings markets continue to develop in the UK.”
Another advantage of savings platforms like Raisin is that by allowing you to access more than one provider, it allows you to spread FSCS protection across your multiple holdings.
For example, if you save with six different banks which are all covered by FSCS on the platform, you would be protected up to £ 85,000 on each account – notwithstanding any additional funds you might hold with the bank separately by outside the platform.
We took a look at savings platforms including the Flagstone and Hargreaves Lansdown offerings in a recent article if you want to learn more.
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