Al Rayan Bank gives boost to returns for Fixed Term Deposit customers
Al Rayan Bank is increasing the expected profit rate (EPR) for new 12, 18, 24 and 36 Month Fixed Term Deposit (FTD) customers, effective immediately.
The Bank is increasing the EPR of its 12 Month FTD from 1.85% to 2.02%. It is also boosting the EPR of its 18 Month FTD from 1.95% to 2.07%, its 24 Month FTD from 2.05% to 2.17% and 36 Month FTD from 2.20% to 2.27%. Profits are calculated on a daily basis and are paid quarterly, taken as income or reinvested.
Commenting on the increased in EPRs, Saquib Ismail, Head of Branches and Retail Deposits at Al Rayan Bank, said: “We’re constantly looking at ways to deliver more to our savers, and the high returns on our FTD accounts are one way of ensuring they are making the most of their hard-earned money.
“It’s important for us to ensure that our products remain competitive and that we continue to support our customers in making well-informed financial decisions when it comes to their savings.”
Instead of paying an interest to savers, Islamic banks, such as Al Rayan Bank, invest customers’ deposits in ethical, Sharia compliant trading activities to generate a profit, which is then shared between the customer and the Bank as per the terms of the account. Although profit rates cannot be guaranteed, in 14 years of operation Al Rayan Bank has always paid at least the profit rate it has quoted to its customers, and is a member of the Financial Services Compensation Scheme, which guarantees customers’ deposits up to £85,000.
As with all Al Rayan Bank’s products, the customer’s money is invested ethically. Customers are given a guarantee that their funds will only be invested in Sharia-compliant, ethical investments. These exclude all interest-bearing transactions and activities such as gambling, speculation, tobacco and alcohol.
FTDs require a minimum deposit of £1,000. Deposits may be made in cash, cheque or by direct account transfer.
Al Rayan Bank is the UK's oldest and largest Sharia compliant bank. It increasingly appeals to customers of all faiths and none, Indeed, it is estimated that over 90% of FTD customers who joined the Bank last year were non-Muslim.
As an independent UK bank, Al Rayan Bank is authorised by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority and the PRA.
* Al Rayan Bank is the largest Islamic bank in the UK by assets as per latest published accountsGo Back