Al Rayan Bank increase 24 Month Fixed Term Deposit expected profit rate to 2.52%*
Al Rayan Bank has increased the expected profit rate of its 24 Month Fixed Term Deposit (FTD) account to 2.50%. For savers that choose to reinvest their profits, there is an even higher expected rate of return at 2.52%. This is the highest expected profit rate offered on the Bank’s 24 Month FTD since June 2013, and it has taken the account straight to the top of the Moneyfacts best buy table.
The increase in the expected profit rate comes at a particularly opportune moment for savers, as Bank of England Governor, Mark Carney, recently indicated the Bank of England base rate may remain low for longer than previously thought, rising in around two years. Inflation in the UK is currently negative (-0.1%) and the Bank of England has once more announced that it will keep UK interest rates at 0.5%, where they have remained since March 2009.
Al Rayan Bank’s 24 Month FTD can be opened online, in-branch, by phone or by post, with a minimum of £1,000. Deposits can be made by cash, cheque or by direct account transfer. Profits are paid to customers either quarterly or at maturity. For customers that choose to reinvest their quarterly profit for the entire term, the expected return is the equivalent of 2.52% (gross per annum). For those who choose to take the profit quarterly, the expected return is 2.50% (gross per annum).
The 24 Month FTD joins a range of the Al Rayan Bank’s savings products that have consistently topped the Moneyfacts best buy tables since December 2012. Competitive returns such as this, combined with the Bank’s ethical approach to banking and great customer service, have helped its products to become increasingly popular with customers of all faiths. Indeed, the Bank estimates that 83% of all FTD savings customers who joined the Bank in 2014 were non-Muslim.
As an Islamic bank, Al Rayan Bank pays profit to its savers, rather than a guaranteed rate of interest. This means that there is a small element of risk on the return, which is shared between the customer and the Bank. In reality, since the Bank was established in 2004, it has always achieved the profit rate that it has quoted to its customers. Additionally, Al Rayan Bank’s savers are fully covered by the UK Financial Services Compensation Scheme, which currently protects eligible depositors’ savings up to £85,000.**
The UK’s only wholly Sharia compliant retail bank, Al Rayan Bank’s ethical principles prohibit it from investing its savers’ deposits in activities connected with gambling, pornography, tobacco, arms and other commodities not in keeping with the values of Islam. This approach has helped it to achieve global recognition for its outstanding success***.
Al Rayan Bank is an independent UK bank, with over 60,000 customers. It is authorised by the Prudential Regulation Authority, regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
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* Terms and conditions apply. Expected profit rate of 2.52% (where profit is reinvested and paid on maturity). For customers who choose to take the profit quarterly, the gross per annum expected return is 2.50%
** On 1 January 2016 the deposit protection limit is changing from £85,000 to £75,000 for individuals.
*** In May 2015, Al Rayan Bank PLC was named by Global Finance magazine as one of the best Islamic banks in the world, in its annual list of the World’s Best Islamic Financial Institutions. This is the second time that Al Rayan Bank has won the award, formerly winning under its previous name of Islamic Bank of Britain in 2009.Go Back