Higher than expected profits for young savers
More than 3,300 of our junior savers with a 90 Day Young Person's Notice Savings Account have become the latest customers of Al Rayan Bank to benefit from the unique way our Sharia compliant savings accounts are structured.
The account, which can be set up by parents or guardians for children under 16, quotes an expected profit rate of 1.30%, but paid out 1.44% in October and 1.48% in November.
How did we do that?
Islamic banking is sometimes referred to as ‘partnership banking’ because the customer and the bank share the risk and reward of any investment. This is why Al Rayan Bank advertise “expected profit”, rather than “guaranteed interest”.
Al Rayan Bank has always paid at least the profit rate and when our investments do better than expected, on some accounts – as is the case here – we share our profits with our customers.
We always invest our customers’ money in Sharia-compliant, ethical investments. These exclude all interest-bearing transactions and activities such as gambling, speculation, tobacco and alcohol.
What are the benefits of opening a 90-day Young Persons Notice Savings Account?
In addition to generating good returns from ethical investments, getting children involved in their finances from a young age can teach them important lessons about money management. This will equip them with skills they need to become committed savers right through to adulthood.
As one customer, Kamran Sarwar from Birmingham, put it: “I opened a Young Person’s Notice Savings Account for my children because I wanted to introduce them to ethical banking from an early age. One of my children is about to turn 16, so I’m keen for him to appreciate financial responsibility while having an awareness of ethical finance too – something that’s difficult to enforce with a conventional bank. We were thrilled when the Bank overpaid its profit in October and November, but what’s really great for us is knowing we’ve received this ethically.”
More about our Young Persons Notice Savings Account.
A 90-day YPNSA account requires a minimum deposit of £20 and can be in the name of anyone under the age of 16. Deposits may be made in cash, cheque or direct account
transfer in the child’s or guardians name. Parents or guardians are the gatekeepers of the account until the child reaches 14 years of age, when the young person can gain approved access to make withdrawals from the account.
You can find out more here.