New research from Gatehouse bank has revealed that 79% of Shariah-compliant banks now offer better savings rates than the market average, with its product trumping easy access accounts, fixed term accounts, and 30, 60 and 90 day notice accounts.
The study found that, overall; the average rate on Shariah-compliant products was 1.54% while the average for mainstream accounts was 1.29%. Of the 14 different Shariah-compliant accounts surveyed, 11 of them beat the market average.
Gatehouse Bank reported that Shariah-compliant savings accounts are growing in popularity in the UK, amongst both Muslim and non-Muslim savers, who are attracted by the improved returns and the ethical way in which they invest.
Commenting on the findings, Gatehouse Bank CEO Charles Haresnape said: “Shariah-compliant accounts are still relatively niche but this part of the market is growing significantly. Savers increasingly understand how they work, the ethical way they invest and, above all, the superior returns many offer.
“Shariah-compliant institutions have to work harder to get the public’s attention and offering better rates is one quick way to achieve this. But, on a more fundamental level, what we’re seeing is the emergence of a genuine challenge to the UK savings establishment.”
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