FT Advisor | Best rates offered by Islamic banks

Savers searching for the best rates may notice the top deals are now offered by Islamic banks.

Latest data from Moneyfacts showed off-high street brands regularly offered the best deals when it came to one and two-year fixed bonds in the past ten years.

In fact, the current best buy deals within these sectors were dominated by Islamic banks, forcing competition from other brands looking to maintain a prominent position within the charts, according to the information provider.

Currently the four banks offering the best rates on one-year fixed bonds – BLME, Al Rayan Bank, QIB and Gatehouse Bank – all offer Sharia-compliant savings.

Gatehouse, Al Rayan and BLME also held the top spots for two-year fixed bonds.

Although Islamic banks don’t pay interest, they pay an expected profit rate comparable to interest rates on other savings accounts.

In practice, this profit rate is usually achieved, Moneyfacts found, and Gatehouse Bank stated it had never failed to pay the rate.

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Author: The Muslim Wealth Portal

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