Islamic Bank of Britain launches Young Person’s Notice Savings Account
Islamic Bank of Britain plc, IBB, (www.islamic-bank.com) today announced the launch of its Sharia compliant Young Person’s Notice Savings Account (YPNSA) offering an expected profit rate of 1% (gross p.a.), paid on a monthly basis. The account can be opened with a minimum of £20 and requires 90 days notice to make a withdrawal. Profit can be paid gross (without the deduction of income tax), if the young person is eligible.
IBB’s YPNSA has been developed following qualitative research carried out by the Bank amongst its customers and prospective customers, and on quantitative research conducted for the Bank by Experian, the global information services company. The findings of both revealed that:
- The UK Muslim population is disproportionately young when compared to the UK population as a whole – 60.7% of adult Muslims are aged 18-40, compared to 51.5% of the whole UK
- The UK Muslim population has a disproportionately high number of households with children under the age of 18 years – 72.1% of Muslim households have children under 18, compared to 40.6% for the whole UK
- Although the majority of Muslims work or are economically active, 49.7% earn less than £20,000 p.a.
- There are however over 750,000 that earn in excess of this figure.
- There is significant appetite for Sharia compliant young person’s savings products, which allow parents and family members to invest in the future financial and spiritual wellbeing of their children.
IBB’s YPNSA is the UK’s only Sharia compliant notice savings account for children and with the largest range of Sharia compliant retail financial products in the UK, this represents just the latest product innovation from IBB. Based on ethical principles, youngsters’ savings will not be invested in activities such as gambling,
pornography, speculation, tobacco and other commodities prohibited under Sharia.
As an inclusive bank, IBB welcomes savers of all faiths and, as a UK bank, IBB is authorised and regulated by the Financial Services Authority (FSA). IBB is a member of the Financial Services Compensation Scheme (FSCS) offering savers protection of up to £85,000 per person, per firm.
IBB’s YPNSA can be opened as soon as the child is born. With a low opening balance and no minimum amount for ongoing deposits, the account provides an easy way for youngsters to form the habit of saving at an early age.
As an added feature, the YPNSA can automatically receive the profits earnt from an adult’s IBB Direct Savings, On Demand and Notice Accounts. Friends and family, such as parents, grandparents, aunts and uncles can take advantage of this feature, helping younger members of the family build a healthy savings
balance for the future.
At the age of 14 the parent or guardian can give access to the young person to make withdrawals from the account (subject to 90 days’ notice). Then, at the age of 16, the young person can transfer the YPNSA account into an IBB savings account in their own name. Up until age 14 the adult is the only person with withdrawal access.
As an Islamic Bank, IBB does not pay interest to its savers. Instead, it pays an 'expected profit'. The Bank invests the depositors’ funds into Sharia compliant and ethical trading activities which deliver an ongoing, monthly profit, shared by the Bank with the customer.
As part of the agreement between the customer and the Bank, IBB monitors the target profit rate on a daily basis to ensure that it is achievable and will provide the expected return.
To date, for this type of notice savings product, IBB has always achieved the expected profit rate offered to ts customers.
About Islamic Bank of Britain
Islamic Bank of Britain plc (Bank) has pioneered Sharia compliant retail banking in the UK and has launched a wide range of products, including the Home Purchase Plan (the halal mortgage alternative) Current Accounts and Savings Accounts. The Bank was also the first to introduce Sharia compliant business banking to the UK, and now offers a wide range of institutional and business banking products and services, including Commercial Property Finance.
Several of the Bank’s products remain unique in the UK retail market.
The Bank is authorised and regulated by the Financial Services Authority and is a member of Financial Services Compensation Scheme. All products offered by the Bank are fully approved by the Bank’s Sharia Supervisory Committee (SSC).
Sharia compliant banking operates without the use of interest. The products that are offered are structured in a different way to those provided by conventional banks
Whilst the Bank offers products and services that are designed in accordance with Sharia principles, it is an inclusive Bank and welcomes customers of all faiths.
Notes to editors:
Interviews with Islamic Bank of Britain are available on request. The bank should only be referred to as “Islamic Bank of Britain”. If abbreviated please use “IBB”.
Issued by Islamic Bank of Britain Plc, Edgbaston House, 3 Duchess Place, Birmingham B16 8NH