Gatehouse Bank launches UK’s first Shariah-compliant Regular Saver account

  • The Regular Saver account has been launched to help drive financial security among younger generations
  • The Regular Saver account can be opened with a minimum deposit of £1

Gatehouse Bank has today launched a Regular Saver account, the first Shariah-compliant product of its kind in the UK.

The account aims to help young people form positive savings habits by setting money aside every month for a fixed period of 12 months. The product is open to all UK residents aged 18+ but is especially well-suited to young people or those with smaller deposits, as it can be opened with a minimum of £1. Following this, customers can make monthly deposits of up to £300, which can be done through an unlimited number of transactions.

The launch follows Gatehouse Bank’s consumer research* into UK adults’ attitudes towards money, which revealed an increasing focus on saving. Nearly half (45%) of respondents identified as a saver rather than a spender, with one in 10 adults (11%) saying that their mindset had shifted towards saving in the last 12 months due to financial challenges like the cost-of-living crisis.

The same study revealed a generational gap regarding financial security, with a third (33%) of respondents aged 18-24 and a similar number (30%) of 25-34-year-olds doubting whether their financial goals were achievable. Meanwhile, 18% of the youngest respondents said they did not know what financial security meant to them.

However, Gatehouse Bank’s research also showed that young people are more inclined to save for specific milestones such as a new car, a wedding or buying a home. In fact, just under a third (30%) of 18–24-year-olds were saving for a house, a fifth (21%) to get married and over a quarter (28%) to start a family.

Our Regular Saver account

Gatehouse Bank’s Regular Saver account has been designed with this research in mind, aiming to encourage customers to save towards their specific short- or long-term goals. Users can customise their savings pot by renaming it to suit their individual needs (e.g., rainy day fund; wedding fund) helping them stay motivated towards achieving their specific goals.

The Regular Saver product has a competitive variable expected profit rate** of 7.00% paid at the end of the term, meaning that customers will build up a savings fund regardless of how little they invest. Withdrawals are not permitted until the end of the term, after which the account automatically rolls over into a Gatehouse Bank Easy Access account.

Gatehouse Bank's Spenders vs Saver Report 2023

Ravi Kumar, Senior Product Manager at Gatehouse Bank commented: “Whether customers are saving for a significant milestone or aiming to build their rainy-day fund, it is important to set specific savings goals, which help to stay motivated and accountable and ultimately create positive habits.

“Gatehouse Bank’s Regular Saver account has been designed to provide a competitive return for customers who make regular deposits and allows them to proactively check progress against their goals.

“While our Regular Saver fills a gap in the Shariah-compliant market, the account is open to anyone, regardless of their beliefs, and we hope it will help set younger generations of savers on the right path towards improving their financial security.”

*This survey was commissioned by Gatehouse Bank and carried out by 3Gem. The research anonymously surveyed 1,000 nationally representative UK adults between the ages of 18 and 60 between 21st – 23rd August 2023. The research assessed respondents’ attitudes towards saving, asking them to identify as either a saver or a spender, with subsequent questions analysing the rationale behind this approach to money.

**The expected profit rate is what Gatehouse expects to deliver to customers when they invest their funds. It’s the profit Gatehouse share from the returns generated. To date, Gatehouse has always generated and paid customers the expected profit rate stated when the account is opened.