IBB beats the big banks with best-buy ethical savings deals and ‘top-rate’ service
Islamic Bank of Britain plc (IBB), (www.islamic-bank.com) has extended its reign over the long-term savings Best Buy tables, compiled by Moneyfacts.co.uk. The Bank has been topping the Best Buy tables since December 2012 with its 24 month Fixed Term Deposit (FTD) account. Now its entire range of Sharia compliant long-term savings accounts, consisting of 12, 18 and 24 month FTDs, are offering market-leading profit rates. Its 2 year FTD is even beating the returns on offer from the three year fixed term bonds listed on the Moneyfacts website*.
As well as offering competitive returns, the Bank’s exemplary customer service has been instrumental in drawing both Muslim and non-Muslim savers to its accounts. The Bank estimates that for the period 1st December 2012 – 28th February 2013 over 79% of applications for its 24 month Fixed Term Deposit Account have been from non-Muslim customers.
Mr Daniels recently joined the Bank as a customer and was very impressed by IBB’s refreshingly friendly and efficient customer service. He says, “I was drawn to IBB for the market-leading profit rate being offered for the 24 month Fixed Term Deposit Account but it was the Bank’s top-rate customer service that really overwhelmed me. IBB really knows how to treat their customers well and the big high street banks have a long way to go if they want to match their standards. I found the call centre staff member extremely helpful and friendly, making the whole process easy and efficient. I have accounts with other banks, but my experience with them does not compare. It’s refreshing to find a bank which lives up to their promise of putting the customer first.”
Sultan Choudhury, Managing Director, IBB added, “IBB is proud to be known for its ethical values, table-topping deals and friendly service. Customers want their bank to provide great value and great service as the norm. IBB understands this and has developed an approach that is both good for the customer and different to conventional banking.”
IBB is founded on faith-based, ethical principles that are derived from trade, entrepreneurship and risk-sharing in which the customer and Islamic bank work together as partners towards a mutually profitable end. These principles also prohibit the Bank from investing savers’ deposits in unethical activities such as gambling, pornography, speculation, tobacco and other commodities prohibited under Sharia. IBB’s overall approach has earnt the Bank recognition as an ethical alternative to conventional banking by the Move Your Money campaign. The Bank can also be found in the top ten of ethical current account providers, according to ratings compiled by Ethical Consumer magazine: http://www.ethicalconsumer.org/buyersguides/money/bankingcurrentaccounts.aspx
IBB is offering 2.27%** for its 18 month FTD and 2.63%**, for its 24 month FTD. The Bank has also boosted the expected profit rate for its 12 month FTD to 2.00%**, which is the UK’s second highest rate of return for a one year fixed term deposit.
IBB is authorised and regulated by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) and is a member of the Financial Services Compensation Scheme. As an inclusive bank, IBB welcomes individuals of all faiths. The minimum deposit for savers wishing to deposit their money in an FTD is £1,000***. Once the account is opened the customer cannot add or withdraw funds before the maturity date.
Returns for the 18 and 24 month FTDs are calculated quarterly. If the saver leaves the quarterly profit invested with the deposit, the expected respective returns are the equivalent of 2.27%** and 2.63%** (gross per annum). If the saver elects to receive their profit as a quarterly income, the expected respective returns are the equivalent of 2.25%** and 2.60%** (gross per annum). The return for the 12 month FTD is paid on maturity.
As an Islamic Bank, IBB does not pay interest to its savers and instead, the rate is offered is an 'expected profit rate'. This is because the Bank invests the depositors’ funds into Sharia compliant and ethical trading activities which deliver a profit over the agreed, fixed term. 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 return offered to the customer.
If, at any time, market volatility is likely to affect the customer's profit, the Bank will inform them before their profit rate is affected. IBB then offers the customer a choice to close the account or receive the lower rate of profit. The profit achieved prior to this will remain protected, as will the original capital they deposited with the Bank.
To date, for this type of savings product, IBB has always achieved the expected profit rate offered to its customers.
*Correct at the time of writing
**The Bank reserves the right to withdraw this offer at any time. Expected profit rates subject to deposit being held with Islamic Bank of Britain plc for a fixed term period. Gross p.a. subject to personal taxation circumstances.
***Maximum deposit limits apply of £100,000 per person and £200,000 per institution. No additional deposits or withdrawals are allowed from the account during the fixed term.
About Islamic Bank of Britain
Islamic Bank of Britain plc (the Bank, IBB) has pioneered Sharia compliant retail banking in the UK and now offers the largest range of Sharia compliant retail financial products in the UK. These include Sharia compliant mortgage alternatives, the Home Purchase Plan (HPP) and Buy to Let Purchase Plan (BTLPP), 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 financial market.
The Bank is authorised and regulated by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) and is a member of Financial Services Compensation Scheme.
Sharia compliant banking operates without the use of interest and is founded on Islamic finance principles derived from trade, entrepreneurship and risk-sharing. IBB has a dedicated Sharia Compliance Officer (SCO) and a panel of respected Sharia Scholars, called the Sharia Supervisory Committee (SSC), which acts as an independent body to guarantee that IBB’s products and activities are Sharia compliant.
Whilst IBB offers products and services that are designed in accordance with Sharia principles, it is an inclusive, ethical organisation and welcomes customers of all faiths looking for a bank with a transparent, prudent and community-focused approach.
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