Bank Of London And The Middle East

[Guest]

Does anyone have an account with them and if so, are they any good? I’ve seen reviews and posts on sites such as MSE and they seem to get good feedback but just wondered if anyone has any personal experience.At the moment they have a one year fixed rate savings account with an expected profit rate of 1.95% which is better than any of the other banks at the moment. 

[Jim Hardie 525]

1 hour ago, Sheffield87 said:

Does anyone have an account with them and if so, are they any good? I’ve seen reviews and posts on sites such as MSE and they seem to get good feedback but just wondered if anyone has any personal experience.At the moment they have a one year fixed rate savings account with an expected profit rate of 1.95% which is better than any of the other banks at the moment. 

No personal experience but you should make sure that the 1.95% is guaranteed as the following suggests it may not be.

 

BLME is Sharia compliant, which means it pays a “profit” rate rather than an interest rate, which is not guaranteed, and has an investment strategy similar to an ethical fund, in that it cannot invest in arms, alcohol, or adult entertainment.

 

From a five year old article in the Daily Telegraph.

 

https://www.telegraph.co.uk/finance/personalfinance/savings/10795846/Can-you-trust-foreign-banks-competing-for-British-savings.html

 

 

 

[BigPP 94]

1 hour ago, Sheffield87 said:

Does anyone have an account with them and if so, are they any good? I’ve seen reviews and posts on sites such as MSE and they seem to get good feedback but just wondered if anyone has any personal experience.At the moment they have a one year fixed rate savings account with an expected profit rate of 1.95% which is better than any of the other banks at the moment. 

I have two fixed rate accounts with BLME. A 1 year account due to mature in May 2020 and a 2 year account due in September 2021. The expected profit on these is 2.2% and 2.35% respectively.  Clearly rates have fallen significantly since then unfortunately.  The expected profit isn't guaranteed but this from their FAQ's should help.

 

https://www.blme.com/products-and-services/savings/faq/

 

4. Is the profit rate guaranteed? Why do you call it Expected Profit Rate?

As a Sharia’a bank we do not deal in interest-based products and we cannot guarantee the profit rates on our accounts. However, BLME offer our savings accounts with the aim of reaching the Expected Profit Rate. In the unlikely event that your deposit is not producing the agreed profit rate we will contact you. If you then tell us you do not wish to continue with your savings account, we will end your deposit and we will return the original deposit amount in full plus the profit at the original Expected Profit Rate. In this circumstance you will not be penalised for terminating your agreement early.

[Janus 28]

I have an interest in these sort of topics. 

 

On the FCA website, it states " This firm can hold and/or control customer deposits and client money. It will not usually need separate permission to hold and/or control client money but it must protect this money – it cannot lend it or use it to finance its own business."This firm can hold and/or control customer deposits and client money. It will not usually need separate permission to hold and/or control client money but it must protect this money – it cannot lend it or use it to finance its own business."

 

 If it  invests ethically to make a profit, is the profit  only used to pay overheads and 'returns' to the investors. 

 

 

[Jeffrey Shaw 90]

Either way: ensure that your deposits are protected under UK law.

For Bank of England/PRA Depositor Protection Scheme, see

https://www.bankofengland.co.uk/prudential-regulation/authorisations/financial-services-compensation-scheme

Edited November 25, 2019 by Jeffrey Shaw

[Guest]

On 25/11/2019 at 17:07, Jeffrey Shaw said:

Either way: ensure that your deposits are protected under UK law.

For Bank of England/PRA Depositor Protection Scheme, see

https://www.bankofengland.co.uk/prudential-regulation/authorisations/financial-services-compensation-scheme

Is this the same as the FSCS? Their website shows BLME as being authorised but it doesn’t seem to be on the list on the website in your link. 

Edited November 29, 2019 by Guest

[BigPP 94]

2 hours ago, Sheffield87 said:

Is this the same as the FSCS? Their website shows BLME as being authorised but it doesn’t seem to be on the list on the website in your link. 

At the bottom of the Bank of England list it states:

 

Not all banking and saving brands protected by the FSCS are included in this table. If your banking and saving brand does not appear in this table you can ask them directly how your money is protected or check the Financial Services Register to find out whether it has several brands under the same authorisation. Search our Register under 'Financial services firms', then click 'Names' for a list of brands used by the authorised institution.

 

as Sheffield87 says, BLME deposits are covered by the FSCS.