AlRayan Bank has increased the interest rate on its one-year fixed-rate Cash ISA to a market-leading 4.75% AER, including a 0.15% Meteor Boost.
Savers will earn 4.60% AER for the duration of the term, with the additional 0.15% paid as a cash bonus at maturity. The effective rate is 4.75% AER. Deposits can range from £1,000 to £1,000,000, and the account is available to those aged 18 and over.
Expert view on the deal
Caitlyn Eastell, Personal Finance Analyst at Moneyfactscompare.co.uk, said: “AlRayan Bank has increased the rate on its Meteor Savings – 1 Year Fixed Rate Cash ISA this week to a market-leading 4.75%, which includes a 0.15% Meteor Boost.”
Eastell added: “Savers can make deposits starting from £1,000; however, savers should consider their initial investment carefully as further additions are not permitted. This account is best suited to savers looking to maximise their tax-free returns and those looking for certainty by guaranteeing their rate for the next year.”
Access and transfer rules
While savers can access their cash early, the expected profit rate will drop dramatically to just 0.05% for 90 days or the number of days the account has been open, whichever is lower. Access is permitted only upon closure and is subject to this reduction.
Further additions to the account are not permitted. Transfers into the account are allowed, including from Cash ISAs and Stocks and Shares ISAs. Transfers out are permitted only at closure and are subject to the same reduction in the expected profit rate.
Eastell noted: “Before the account matures it’s important savers give instructions on where their cash should go, otherwise it will be paid into the default linked or nominated account.”
