The bank has increased its ISA interest rate for savers. AlRayan Bank has introduced a market-leading rate of 4.75% on its Meteor Savings. Savers will earn 4.60% AER during the term, and then with Meteor Boost at 0.15% the effective rate will be 4.75% AER. On redemption, a return of 4.60% AER will be credited to your Cash ISA. At the same time, Meteor will pay an additional amount as a cash bonus into your Cash ISA.
Savers can deposit between £1,000 and £1,000,000 into the account for a period of one year. You must also be 18 years of age or older to open an account.
Commenting on the deal, Caitlin Eastell, personal finance analyst at Moneyfactscompare.co.uk, said: “AlRayan Bank this week increased the rate on its Meteor Savings – 1 Year Fixed Rate Cash ISA to a market-leading 4.75%, which includes a 0.15% increase in Meteor Boost.
“Savers can make deposits starting from £1,000; however, investors should consider their initial investment carefully as further top-ups are not permitted. This account is best suited for savers looking to maximize their tax-free income and those seeking certainty by guaranteeing their rate for the following year.
“While savers can get early access to their money, the expected rate of return will plummet to 0.05% within 90 days or the number of days the account has been open, whichever is less, so access should be carefully considered.
“Before an account matures, it is important that depositors give instructions on where their money should go, otherwise it will be transferred to a linked or designated default account.”
Access is permitted only upon closure and subject to a reduction in the expected rate of return to 0.05% per 90 days or the number of days the account has been open if less than 90 days.
Further additions to the account are not permitted.
Transfers from the account are permitted only upon closure and are subject to a reduction in the expected rate of return of up to 0.05% per 90 days or the number of days the account has been open if less than 90 days.