Al Rayan Bank launches three market leading Fixed Term Deposit Accounts

12 October 2015

Al Rayan Bank today launched three market leading* Fixed Term Deposit (FTD) accounts which allow savers to reinvest their profit and maximise their rate of return. The ‘Best Buy’* expected profit rates mean that if you have a lump sum of £1,000 or more to deposit, you can now benefit from returns as high as 2.73%**.

  • A 36 month FTD with an annual equivalent expected profit rate of 2.73%**
  • A 24 month FTD with an annual equivalent expected profit rate of 2.42%**
  • An 18 month FTD with an annual equivalent expected profit rate of 2.17%**

Profits may be reinvested and paid on maturity, or paid quarterly into a nominated account as an income. For customers who choose to take their profit as income, the expected profit rates are 2.70% (36 month), 2.40% (24 month) and 2.15% (18 months).

All accounts require a minimum deposit of £1,000 and can be opened online, in-branch, by phone or by post. Deposits may be made by cash, cheque or by direct account transfer.

Al Rayan Bank’s FTDs are Sharia compliant savings accounts, in which the customer authorises the Bank to invest their deposit to generate a profit, as opposed to conventional savings accounts which pay guaranteed rates of interest. This means that there is a small element of risk involved. However, investments are monitored on a daily basis by the Bank to ensure that they will return the profit rate expected. Since Al Rayan Bank was founded in 2004, it has always paid the rate of profit it has quoted to its customers, and on numerous occasions, when investments have performed better than expected, it has paid more.

The increases in Al Rayan Bank’s FTD expected profit rates are likely to reinforce the products’ appeal to customers of all faiths. In recent years many of Al Rayan Bank’s savings products have proved to be extremely popular with non-Muslims. Indeed, the Bank estimates that 83% of all FTD savings customers who joined the Bank in 2014 were not of the Muslim faith.

The Islamic banking system is an ethical system which is concerned with the wider effects of its actions on society. An internal ethics (Sharia compliance) department monitors the products that Al Rayan Bank sells as well as how it conducts its business on a day-to-day basis, ensuring that everything the Bank does is ethical and Sharia compliant. In addition, an external and independent ethics committee (known as the Sharia Supervisory Committee) oversees all of the Bank’s activities.

As an ethical Sharia compliant bank, Al Rayan Bank works with its customers towards a mutually profitable end. The Bank’s ethical principles prohibit it from investing its savers’ deposits in activities such as gambling, pornography, tobacco, arms and other commodities not in keeping with the values of Islam.

Al Rayan Bank has been a pioneer of British retail Islamic banking for over 11 years. The only wholly Sharia compliant retail bank in the UK, it currently has over 60,000 retail, business and premier customers and its approach has helped it to achieve global recognition for its outstanding success^, and maintain its long lasting reign over the best buy savings tables in the UK^^.

The Bank has also been recognised as an ethical alternative to conventional banks by the Move Your Money campaign and Ethical Consumer magazine, which places Al Rayan Bank in the top ten of ethical current account providers. The Bank is an accredited ‘Living Wage Employer’, voluntarily opting to pay their employees a ‘Living Wage’, which is significantly higher than the current minimum wage and the new compulsory National Living Wage, to be introduced in 2016.

As an independent UK bank, Al Rayan Bank is authorised by the Prudential Regulation Authority, regulated by the Financial Conduct Authority and the Prudential Regulation Authority and is a member of Financial Services Compensation Scheme.

Find out more about Al Rayan Bank's FTDs

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*Source moneyfacts.co.uk 08.10.15, Fixed Rate Bonds 1 year, 2 year and 3 year comparison tables.

**Profit on the 18, 24 and 36 Month FTD can be paid to customers either quarterly or at maturity. For customers that leave the quarterly profit invested with the deposit for the entire term, the annual equivalent profit rate expected return is the equivalent of 2.17 (18 month), 2.42% (24 month) 2.73%*(36 month). Taking the profit quarterly, the gross per annum expected return is 2.15 (18 month), 2.40% (24 month) 2.70%*(36 month).

^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.

^^ From December 2012 to October 2015, at least one of Al Rayan Bank’s savings products was top of the Moneyfacts ‘best-buy’ tables.

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