IBB launches UK’s first Sharia compliant cash ISA to kick-off 10 year anniversary celebrations
Islamic Bank of Britain plc (IBB), (www.islamic-bank.com), the UK’s only wholly Sharia compliant retail bank, today announced the launch of the IBB Notice Cash Individual Savings Account (ISA). The account is the UK’s first Sharia compliant cash ISA and offers consumers an ethical, tax-free way to save. It means that Muslim consumers who prefer to receive a Sharia compliant return on their savings no longer need to miss out on the tax efficient benefits of an ISA, or compromise on their beliefs by placing their deposits in interest-based products.
The IBB Notice Cash ISA is offering a market leading expected profit rate of 1.8%, free of tax. In order to receive this level of return from a savings account where tax is deducted, a basic rate tax payer would need to place their deposit into an account offering 2.25% and a higher rate tax payer would need to save it into an account offering 3.00%. The minimum deposit for the IBB Notice Cash ISA is £250 and requires savers to give 120 days’ notice in order to make a withdrawal. Savers can make regular deposits, and profit is calculated and accrued to the account monthly.
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 launch kicks-off celebrations by the Bank to mark its 10 year anniversary. IBB opened its doors as the UK’s only wholly, Sharia compliant retail bank in 2004 and now offers the largest range of Islamic retail financial products in the UK.
With an expected profit rate of 1.8%, IBB’s Notice Cash ISA will maintain the Bank’s 13 month reign over the best buy savings tables. From 1st December 2012 until 1st December 2013, IBB consistently offered at least one savings account with the UK’s highest rate of return, according to the Moneyfacts best buy tables. Often more than one of IBB’s savings accounts, including the Fixed Term Deposit account for 12, 18 and 24 months and its regular 120 Day Notice Account, was table-topping.
This has significantly increased IBB’s appeal amongst non-Muslim savers. The Bank estimates that for the period 1st December 2012 – 1st December 2013, 87% of applications for its Fixed Term Deposit Accounts were from non-Muslim customers. IBB’s exemplary customer service and ethical foundations have also drawn a number of customers seeking a bank with a genuinely good approach to 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, arms 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.
As an Islamic Bank, IBB does not pay interest to its savers. Instead, this rate is offered as an 'expected profit rate', because the Bank invests the depositors’ funds into Sharia compliant and ethical trading activities. 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 be able to provide the return offered to the customer.
To date, for this type of savings product, IBB has always achieved the expected profit rate offered to its customers.
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 and Prudential Regulation Authority 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 ensure that IBB’s products and activities are Sharia compliant. As a Sharia compliant bank, the source of IBB’s funding, profits and business investments must be ethical. They cannot be from businesses that are considered unlawful under Sharia law, i.e. companies that deal in interest, alcohol, gambling, pornography, speculation, tobacco, arms and other commodities contrary to Islamic values.
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 8NHGo Back