Under Sharia banking principles, a depositor must share in the profit and loss of the bank to avoid exploitative gains. Earning money from money is prohibited in Sharia banking, so savings accounts don’t have interest rates; instead, they have an expected profit rate.
An expected profit rate is an indication of how much you can expect to earn from a savings account from a Sharia-compliant bank, similar to how an interest rate works. This rate can change if the bank makes less profit than expected. If this happens, we will inform you of the new profit rate and give you the option to either continue with the new lower rate or cancel your savings account early and return your capital and the profit you’ve earned at the existing rate to that date to your Raisin UK Account.
Please be aware that you won’t be forced to keep a fixed rate bond open if the rate changes. We will only continue the fixed term at the new rate if you explicitly tell us to do so.