Best one-year bond now pays 2.10%
The new deal trumps the next best rate of 2.05%, offered by Masthaven, Atom Bank, Tandem, Charter Savings Bank and BLME.
Gatehouse is a Shariah-compliant bank meaning savers are not paid interest but instead are given an expected profit rate (EPR). According to the experts at Savings Champion, the bank has never failed to pay out its EPR.
Savings are covered by the Financial Services Compensation Scheme (FSCS), which means if the bank goes bust you’d get up to £85,000 back or £170,000 for joint accounts. (For more, read our guide on sharia savings accounts).
Charles Haresnape, CEO of Gatehouse Bank, said: “Times are still hard for savers but rates are slowly creeping up.
“Recently we’ve seen a little bit more competition in the market with providers trying to better each other. That is not only good news for savers but also the wider UK economy, as it means there are businesses and individuals looking for finance, and banks need to be on the front foot and appealing to savers by making rates more attractive.
“There’s also a growing appetite for different types of providers. Whereas Shariah-compliant finance used to be very niche, the competitive products now available from Shariah-compliant banks are attracting savvy savers from all backgrounds.”
The Gatehouse account requires a minimum deposit of £1,000. If you have a smaller amount to save, Atom Bank’s minimum opening balance is £50.