Al Rayan is paying an expected profit rate of 1.6 per cent on easy access savings – throwing down the gauntlet to the competition.

According to Moneyfacts, the 1.6 per cent rate puts the Everyday Saver at the top of the best buy tables, ahead of Cynergy Bank and Marcus which both pay 1.45 per cent for a year on their respective easy access accounts before the rate falls.

The rate on the Marcus account falls to 1.35 per cent after a year, while Cynergy savers earn just 0.75 per cent AER.

The first raft of customers who opened a Marcus account at launch last September will see their rate drop this month. When the account initially launched it paid 1.5 per cent – the highest easy access rate for two-and-a-half years.

Islamic principles

Al Rayan Bank pays an “expected profit rate” to its savers, rather than interest. This is because it is an Islamic bank which adheres to Sharia principles. Interest is forbidden in Islam, as Muslims believe that it promotes unfairness in financial transactions, which leads to social inequality and injustice.

Since Al Rayan Bank was founded in 2004, it has always paid the rate of profit it has quoted to its customers, and claims that on numerous occasions, when investments have performed better than expected, it has paid even more.

The new Everyday Saver account provides customers with instant access to their money when they need it, with profit paid on a monthly basis. Customers can open and operate the account online, by phone, in branch and by mobile app. There’s a minimum initial deposit of £500 and a maximum limit of £1m.

Deposits up to £85,000 per person are protected by the Financial Services Compensation Scheme (FSCS). As an independent UK bank, Al Rayan Bank is authorised by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority (FCA) and the PRA.

The Everyday Saver is available to personal, business and charity customers.