- UK challenger bank, Gatehouse Bank, refreshes its savings rates and tops the table with its best-buy 60 Day Notice account
- New rates on FSCS-protected accounts demonstrate growing challenge being mounted by banks that are ethical by intention - because they are Shariah-compliant
London, 27 February 2018 – UK challenger bank,Gatehouse Bank, has increased the returns on the majority of its ethical Milestone Savings accounts, with its 60 Day Notice account offering customers a table-topping 1.15%.
As a Shariah-compliant UK bank, Gatehouse Bank’s savings products are ethical by intention and pay an alternative to interest called the Expected Profit Rate (EPR).
The new Fixed Term Deposit and Notice accounts, along with their revised EPRs, are listed below. As of 26th February 2018, the 60 Day Notice account is the highest such rate on the market, while the 31 Day Notice account is joint first.
- 1 Year Fixed Term Deposit: 1.82% AER
- 2 Year Fixed Term Deposit: 2.05% AER
- 3 Year Fixed Term Deposit: 2.21% AER
- 5 Year Fixed Term Deposit: 2.45% AER
- 31 Day Notice: 1.05% AER
- 60 Day Notice: 1.15% AER
- 120 Day Notice: 1.53% AER
Gatehouse Bank’s Milestone Savings Fixed Term Deposit and Notice Accounts are available to all UK savers with a minimum initial deposit of £1,000. All are protected by the Financial Services Compensation Scheme (FSCS).
The accounts’ returns are generated by the bank’s profit-generating Shariah-compliant assets, making them popular not just with Muslim savers but all UK savers seeking ‘responsible’, market-leading returns.
As an ethical institution, Gatehouse Bank won’t get involved in or support gambling, alcohol, tobacco or arms companies. Examples of eligible activities include financing or investing in construction projects, property and sukuk (Islamic bonds).
Whatever the activity, some of the profit the bank earns from these activities is returned to customers, allowing them to grow their savings without earning interest.
Charles Haresnape, CEO, Gatehouse Bank, commented:
“These latest rates show that ethical savings can be not just market-leading but, in the case of our 60 Day Notice account, table-topping.
“As a Shariah-compliant UK bank, we are ethical by default. This means that all savers can be reassured that their money will never be invested in companies in, say, the gambling, alcohol, tobacco and arms sectors.
“Our goal is to offer an alternative to all UK savers for whom returns are not just market-leading but ethical to boot.”
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Notes to Editors
Matthew West | T +44 (0) 7843 903 258 | E: Matthew@rhizomemedia.co
Rupert Bhatia | T +44 (0) 7710 236 037 | E: Rupert@rhizomemedia.co
Quick Q&A: Shariah-compliant Saving with Gatehouse Bank
Hmm, so do Gatehouse Bank’s savings accounts pay profit, not interest?
Charging and paying interest is forbidden under Islamic law as money shouldn’t in itself generate money. Instead, Gatehouse Bank invests savers’ deposits in eligible, Shariah-compliant investments, sets an ‘Expected Profit Rate’ (EPR) and shares returns with the investor.
Profit on a savings account? Sounds a bit risky….
Relax - Gatehouse Bank monitors your account every day to ensure the expected profit rate will be achieved. And crucially, Milestone savings has never failed to pay the Expected Profit Rate (EPR).
In the unlikely event we think the expected profit rate won’t be achieved, we will contact you to tell you about the new EPR. You then have the option to keep the account at the new rate or close it immediately. If you choose to close your account, your money is returned along with all profit earned up to that point.
Oh, and let’s not forget that all deposits are protected by the Financial Services Compensation Scheme (FSCS) up to the scheme limits specified.
Where is the money invested?
As a UK bank adhering to Shariah principles, Gatehouse Bank won’t be involved in sectors such as gambling, alcohol, tobacco or arms — a philosophy common to many ethical investors regardless of their religious conviction. Examples of eligible activities include financing or investing in construction projects, property and sukuk (Islamic bonds).
About Gatehouse Bank plc
Gatehouse Bank plc (registered number 06260053) (the “Bank”) is a Shariah-compliant challenger bank based in London and is part of the Gatehouse Financial Group of companies. It is authorised by the Prudential Regulation Authority (PRA) and regulated by the Prudential Regulation Authority and the Financial Conduct Authority. Founded in 2008, the Bank operates in accordance with Shariah principles and offers savings products and finance for UK commercial and residential real estate, in addition to sourcing and advising on UK real estate investments with a focus on the build to rent sector.