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Gatehouse Bank Announces Increase to Savings Rates

Gatehouse Bank Announces Increase to Savings Rates

London, 13th August 2018 – UK Shariah-compliant challenger bank, Gatehouse Bank, is increasing the rates on all its Notice Accounts by 0.25%. This announcement follows the Bank of England’s decision last week, to increase the Base Rate. The increased rates will benefit both new and existing savers and will take effect on Friday, 17th August 2018.

The bank, which previously offered three Notice Accounts, set at 31 days, 60 days and 120 days, is also introducing a new 95 Day Notice Account offering a return of 1.77%.

Notice Accounts

Rate from 17 August

Previous Rate

31 Day Notice

1.30%

1.05%

60 Day Notice

1.40%

1.15%

95 Day Notice

1.77%

- New account -

120 Day Notice

1.78%

1.53%

 

Charles Haresnape, CEO at Gatehouse Bank, commented:

“I’m delighted that we are able to increase the returns available on our range of notice accounts. Unlike many banks so far, we are transparently passing on the Bank of England’s increase in full, to hard-pressed UK savers. These have had a demoralising decade, struggling to make a real return in a low interest rate environment and increasing returns will, hopefully, encourage more to saving for their dream purchases, whether that be weddings, holiday, retirement or simply a lump sum to deal with those unexpected bills.

“Whilst savings rates are still relatively low, there are a number of providers now offering considerably greater returns than those available from the traditional high street banks, and I would encourage all savers to shop around for the best returns on their hard earned savings.”

Savings held with Gatehouse Bank are protected by the Financial Services Compensation Scheme (FSCS) up to £85,000 per person. The minimum initial deposit is £1,000.

Conventional banks generate returns for customer savings accounts by making loans and investments. Gatehouse Bank similarly generates returns for its customer savings accounts, but these are from profit-generating Shariah-compliant financing and investments, making its products popular with savers seeking ethical returns.

Being Shariah-compliant means that Gatehouse Bank invests responsibly. The Bank does not use customer deposits to finance organisations operating in the gambling, alcohol, tobacco or arms sectors. Examples of eligible financing and investments include construction projects, property and sukuk (akin to bonds).

It also means that, instead of traditional interest rates, the bank offers an alternative known as the Expected Profit Rate (EPR).

In the unlikely event that the expected profit rate needs to change, the Bank will communicate the new EPR to the customer. The customer then has the option to keep the account at the new rate or close it immediately. The original EPR would still be paid up to that point and, if the customer chooses to close their account, their money is returned to them, with no penalty.

It is worth noting that Gatehouse Bank has never failed to pay the Expected Profit Rate (EPR).

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