50k to invest....Sharia Savings?

[Jakey123]

Hey guys,

Got a couple of ISAs maturing but realistically unsure I have enough saved to bother with transferring this and savings accounts seem to be offering better returns....
I am a higher rate tax payer, so have £500 savings allowance tax free.
So possibly fill one ISA and the rest in a savings account>
I've got circa 50k that I will probably be in need of it next year/18months so nothing long term here.

I've noticed BLME offering 2.2% on a 1yr fix with a sharia compliant savings account, does anyone have experience with sharia lending?
Are the 'expected returns' pretty much guaranteed just the wording to please the concept?

Any advice or alternatives appreciated.

I am only interested because of the rate, Not because of the ethics of it.


I cant see a relatively low risk way of exceeding 2.2% in a year period.

Thanks!

Edited by Jakey123 on Tuesday 30th July 14:56

[NickCQ]

Are those products FSCS protected? If not, you aren’t comparing like for like vs a deposit account. As I understand it in shariah transactions there is usually some property risk to get around the prohibition on ‘money on money’ interest.

[Jakey123]

NickCQ said:

Are those products FSCS protected? If not, you aren’t comparing like for like vs a deposit account. As I understand it in shariah transactions there is usually some property risk to get around the prohibition on ‘money on money’ interest.

Yes, They are.

See;
https://www.blme.com/products-and-services/savings...

Just noticed 2.35 for an 18month fix, Seems good surely?

Don't think I'm missing anything...?

[Zoon]

My community bank offering 2.35% on a two year fixed with no Sharia messing about.

[JulianPH]

Zoon said:

My community bank offering 2.35% on a two year fixed with no Sharia messing about.

Interesting. What is your community bank (if you don't mind me asking)?

[KTF]

Its a credit union rather than a bank: https://www.communitybanknetwork.co.uk/

[Zoon]

KTF said:

Its a credit union rather than a bank: https://www.communitybanknetwork.co.uk/

They still offer savings accounts and FSCS protection the same as any bank or building society with no Sharia involvement.

[KTF]

Zoon said:

They still offer savings accounts and FSCS protection the same as any bank or building society with no Sharia involvement.

I didn't say they didn't Was just answering the 'what is it' aspect.

[JulianPH]

Ahhh, The company - 'My Community Bank' - (not some random 'community bank')!!!

12 months looks best to me (perhaps 18 months too). I wouldn't go for the longer terms though.

Most of the time it is not worth going for a cash ISA unless you just want to grab the allowance to move it to a S7S ISA.

The rates are abysmal.