Earn almost £200 more on your Cash ISA by leaving mainstream banks behind
- Al Rayan Bank offers an average of almost £200 more return than mainstream providers on its 24 month Fixed Term Deposit Cash ISA
- The Bank's Instant Access Cash ISA also generates over £100 more expected profit than other well-known banks
- Industry expert calls on savvy savers to shop around to get the most of their savings account this summer
Data from Moneyfacts* shows that the average annual earning on a £20,000 deposit for an Instant, 12 month and 24 month Fixed Term Deposit Cash ISA is £169, £245 and £542 respectively. Yet, some mainstream banks pay less than £50 in interest a year on their Instant Cash ISA accounts. In comparison, newer, specialist and challenger banks have higher rates and could be more likely to generate greater returns.
Andrew Hagger Personal Finance Expert from Moneycomms.co.uk said: "Savers are constantly urged to shop around but many don’t take action because they don’t think it’s worth the hassle. However, the difference in rates offered by high street banks and the lesser known challenger banks is much wider than people realise.
"If somebody told a customer of a high-street bank that they could earn £271 per year instead of £70 on their £20,000 nest egg and still benefit from Financial Services Compensation Scheme I’m sure most would jump ship in an instant. Just because you’re not familiar with a challenger bank don’t dismiss it out of hand – you could in some cases almost quadruple your annual interest income without taking any risk."
|Instant Cash ISA Provider||Current rate (as of 05-09-18)||Annual return rate on £20,000|
|Al Rayan Bank||1.35%||£271.68|
|Post Office Money (Online ISA - Easy Access Issue 13)||1.22%||£245.37|
|HSBC (Loyalty Cash ISA – Premier customers)||0.85%||£170.66|
|Santander (123 eISA Issue 4)||0.60%||£120.33|
|NatWest (Cash ISA)||0.35%||£70.11|
|24 month Fixed Term ISA provider||Return rate on £20,000 (upon maturity) as of 05-09-18||12 month Fixed Term ISA provider||Return rate on £20,000 (upon maturity) as of 05-09-18|
|Average return rate||£542.20||Average return rate||£244.90|
|Al Rayan Bank||£736.60||Al Rayan Bank||£324.39|
|Barclays Bank (2 Year Premier Flexible Cash ISA - Issue 5)||£489.65||Virgin Money (Fixed Rate Cash E-ISA Issue 338)||£293.96|
|Santander (123 2 Year Fixed Rate ISA)||£322.47||Skipton Building Society (1 Year Fixed Rate ISA Issue 66)||£261.55|
|Lloyds Bank (2 Year Fixed Rate Cash ISA)||£200.96||Nationwide Building Society (1 Year Fixed Rate ISA)||£150.52
Al Rayan Bank offers a variety of savings products. All of the Bank's products are Sharia-compliant, meaning customers are given a guarantee that their funds will only be invested in Sharia compliant and ethical investments. These exclude all interest-bearing transactions and activities such as gambling, speculation, tobacco and alcohol.
Rather than gaining interest on savings, the Bank undertakes Sharia compliant activities with the intention of generating an estimated profit rate which is shared with the customers. Al Rayan Bank has always paid the rate of profit it has quoted to its customers.
Keith Leach, Chief Commercial Officer, Al Rayan Bank commented: "Al Rayan Bank is focused on delivering highly competitive returns to savers. The Bank's Cash ISA range is currently one of the highest paying in the UK, and we believe that these highly competitive returns, together with the ethical nature of Islamic banking and Al Rayan Bank’s reputation for great customer service, are the reason why customers of all faiths and none choose to bank with us."
As an independent UK bank, Al Rayan Bank is authorised by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority and the PRA.The Bank is also a member of the UK Financial Services Compensation Scheme, which guarantees customers’ deposits up to £85,000.
*Al Rayan Bank looked at the average variance of well-known high street names across each type of savings account (Instant Access ISA, 12 month Fixed Term Deposit ISA, 24 month Fixed Term Deposit ISA).
Data from Moneyfacts shows that the average annual earning on a £20k deposit for an Instant, 12 month and 24 month Fixed Term Deposit ISA is £115.26, £240.76 and £536.04 respectively.
**Data from Moneyfacts calculates the average return rate based on the returns generated across 95 Instant Access ISA accounts. The average was also calculated across 43 Fixed Term ISA accounts (12 month) and 47 Fixed Term ISA accounts (24 month).
Correct as of 5 September 2018Go Back