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How is interest calculated?
Due to the Sahria’a compliant nature of this account interest is referred to as profit.
The Premier Deposit Account offers a variety of rates depending on how much money you have to save and how long you would like to tie your savings up. The rates are as follows:
| Term | £50,000+ | £100,000+ | £500,000+ |
| 1 year | 3.45% | 3.55% | 3.70% |
| 18 months | 3.75% | 4.00% | 4.15% |
| 2 years | 4.05% | 4.15% | 4.25% |
| 3 years | 4.30% | 4.35% | 4.45% |
| 4 years | 4.50% | 4.55% | 4.70% |
| 5 years | 4.80% | 4.90% | 5.00% |
The following note has been taken from BLME’s website and should be read in conjunction with the above information:
“As a Sharia’a bank we do not guarantee the profit rate on our accounts. However BLME offers this account with the aim of reaching the profit rate offered. We promise to monitor the performance of your account each day. In the unlikely event that your deposit is not producing the quoted profit rate we will contact you to ask if you wish to terminate the agreement or agree to continue. At that point we would return the original investment amount plus the accrued profit to the termination date. In this circumstance you would not be penalised for terminating your agreement early.”
Is profit accumulated to my savings?
For the one year fixed rate it is paid at maturity, for all other terms it is paid annually either into a BLME current account or another nominated UK current account.
How long do I have to tie my savings up for?
Between one and five years.
Can I get access to my savings?
No, there is no facility to access your savings during the fixed term.
How do I manage my account?
The Premier Deposit Account, including opening a new account is operated online.
Personal customers can apply online by clicking here.
Business customers can apply online by clicking here.
How much can I save?
The minimum which can be saved is £50,000, the maximum is £2,000,000.
How is the interest taxed?
Interest is paid gross and if you are a tax payer you will need to ensure that the appropriate amount of tax is payable on the return you receive.
What are the advantages of this account?
- The rates of return for all terms from one to five years are currently market leading, see our best buy tables for more information
- BLME are covered by the Financial Services Compensation Scheme (FSCS)
- BLME commit to ensuring that the account is compliant with Sharia’a law
- The Premier Deposit Account is available to individuals, businesses, charities and associations
What are the disadvantages?
- The return is paid gross of tax meaning that tax payers will need to account for the tax due themselves
- In common with most fixed rate accounts there is no option to access your savings during the fixed term
- To open a Premier Deposit Account you also need to open a BLME current account. Which is opened as a means of transferring money into your Premier Deposit Account, it does not come with any of the usual facilities you would normally associate with a current account
- The minimum deposit is relatively high at £50,000
The Investment Sense Verdict
Being a Sharia’a compliant account it is different to most others we deal with on a regular basis, which makes it hard for us to review the account in any great detail.
If the predicted return is achieved then the rates are certainly attractive.
Should you wish to discuss this account or ways of getting a real, above inflation, return on your savings, speak to one of our team of advisers today. They can be contacted on 0115 933 8433, 0845 078 7774 or by sending an email to info@investmentsense.co.uk.
