MortgagesDec 14 2018

Gatehouse relaunches one-year savings account

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Gatehouse relaunches one-year savings account

Shariah-compliant challenger bank Gatehouse has introduced a one-year fixed-term savings account with an annual equivalent rate of 2.10 per cent.

The product sits alongside two, three and five year offerings, which pay 2.14 per cent, 2.33 per cent and 2.68 per cent AER respectively. 

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."

Danny Cox, chartered financial planner at Hargreaves Lansdown, said: "This is a very competitive rate. I would not be surprised if we see more attractive savings rates coming onto the market over the year as initiatives such as Funding for Lending end and as a result of a wobbling stock market. 

"The appeal of cash is likely to grow as savings rates nudge upwards and providers work to maintain their market share. This can only be a good thing for consumers."

Earlier this month Gatehouse launched its first mortgage product as an alternative to traditional mortgages

As a Shariah-compliant bank, Gatehouse does not charge interest, instead the bank and customer are joint owners of the property and the homebuyer pays rent on the share of the property the bank owns. 

The two-year fix is offered to homebuyers with a minimum 50 per cent deposit. 

dan.moore@ft.com