We are often asked for more information on various savings providers that are less well-known or new to the savings market. In this regular series of articles, we aim to turn the spotlight on these providers to give you more information about their background and history and why they are of particular interest in today’s savings market.
We hope that you find this information useful and as always, if you have any feedback or suggestions as to who should appear in a future article, please let us know.
The provider chosen this time appears regularly in our best buys tables – Gatehouse Bank (formerly known as Milestone Savings).
This is an ideal opportunity to find out more about a provider that is not necessarily that well-known, despite having competitive rates available periodically.
Meanwhile, if there is a provider you would like to know more about, that could feature in a future article – please get in touch with your suggestions.
Background Information
Gatehouse Bank plc offers Sharia compliant banking services and is based in London. The bank has been around for a while, having been established in 2008, but the brand is a newer name to the savings market, having appeared in 2015.
As an Islamic bank, the services offered are Sharia compliant, which means that the bank will only invest in Sharia compliant and ethical investments.
As Sharia law states that money itself had no intrinsic value, neither party can profit from an exchange of money, therefore the payment and receipt of interest is forbidden. Sharia compliant savings accounts comply with Islamic law but are available to any saver, regardless of religion or culture.
For more on Sharia compliant savings, read our recent article here.
You may have seen the provider featuring in our best buy tables under its previous trading name of Milestone Savings, with the provider re-branding in May 2018 to revert back to the Gatehouse Bank name.
Gatehouse Bank plc is authorised by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA). In addition, your deposits with the provider are protected by the Financial Services Compensation Scheme (FSCS), so funds placed with Gatehouse Bank would be covered up to £85,000 per person, should the provider go out of business.
For more information on the FSCS, please take a look at our handy guide or call us on 0800 011 9705 to speak to one of our expert savings advisers.
Today’s Savings Market
Gatehouse Bank regularly features in our Sharia account best buy table and a number of the rates on offer are competitive when compared to standard equivalents.
Like all Sharia compliant savings accounts, the accounts pay an 'Expected Profit Rate' as an alternative to interest, which is the level of profit paid by the provider to the saver. The provider invests the money deposited by savers to generate a profit, so there is an inherent risk involved, as the return received depends on the performance of the investments made.
However, whilst the rate is not guaranteed, if your deposit is not producing the agreed rate, the provider will allow you to take the funds away before the end of the term, without penalty, applying the original profit rate until the date of withdrawal.
Click here for more on Sharia accounts and how they work.
To compare these accounts to the rest of the market and for more information on alternatives, take a look at our Best Buy Tables.
Application Process and Customer Service
You apply and manage each of the accounts from Gatehouse Bank online, with a minimum of £1,000.
The online application process is straightforward and the application form is easy to understand. In addition, we have always found them to be easy to contact and helpful.
We certainly have not been made aware of any negative experiences so far from any of our clients or from our own dealings with the provider. Of course, as mentioned earlier, your thoughts and experiences about providers’ customer service are invaluable for us, so please get in touch to share any feedback you have.
A final word...
It is tempting to stick to the well-known brands when it comes to savings accounts, but in doing so, you may be missing out on some of the best rates on the market. Whilst there are some exceptions, for example High Interest Current Accounts, you cannot rely on the larger brands and high street names to offer the best interest rates.
Providers like Gatehouse Bank and other less well-known providers continue to drive competition in the savings market and offer some of the best rates available at the moment.
The best strategy is to look at all options and take each provider on its own merits, considering alternative providers to get the best returns for your money. As long as you do your research (or ask us for more information!) and are comfortable with the provider, there is no reason not to consider them in future.
As mentioned earlier, if there is a provider that you would like to see featured in a future article, please let us know. We are also keen to hear from you if you have any feedback about any provider’s customer service, good or bad! Please contact us at info@savingschampion.co.uk to share your experiences.
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