NEW BRANDS – BUT YOUR SAVINGS ARE SAFE

THE names in today’s savings table have changed beyond recognition from this time ten years ago. In 2010, only three of 17 providers – ING, Bank of Cyprus and Hodge Bank – were not high street savi ngs brands. All the rest were household names – building societies, banks, the Post Office and Marks & Spencer.

Today’s list includes Pakistan’s United Bank Ltd ( UBL), mobile app- only bank Atom and challenger banks Aldermore and Shawbrook. Also included is Al Rayan Bank. Like Gatehouse Bank and BLME, it is an Islamic lender and quotes an ‘ expected profit rate’ rather than the usual interest rate. This is because sharia law sees the payment of interest as usury – as did Christianity until the 16th Century, which is why money lenders were often Jewish.

Yet all of these ‘new’ banks have UK licences, so savers are covered for cash deposits of up to £85,000 by the Financial Services Compensation Scheme – as are other nonEuropean banks that regularly feature in these tables, such as JN (Jamaica National) Bank.

Savings Champion’s Anna Bowes compiles The Mail on Sunday’s best buy tables. She says: ‘BLME won our best savings provider award earlier this month, with UBL runnerup. With many high street providers paying savers virtually nothing in interest, it’s time to call out those who have given something back to support struggling savers.’