Al Rayan Bank widens ISA range with launch of Instant Access Cash ISA
Following the success of its 120 Day Notice Cash Individual Saving Account (ISA) - the UK’s first ever Sharia compliant Cash ISA, Al Rayan Bank PLC, (www.alrayanbank.co.uk), formerly known as Islamic Bank of Britain (IBB), today announced the launch of its Instant Access Cash ISA.
The Notice Cash ISA has been either first or second on the best buy tables with an expected profit rate of 1.80%, since its launch one year ago. Attracted by the product’s excellent expected profit rate and the Bank’s reputation for good customer service, as well as its ethical approach to banking, Al Rayan Bank believes that 47% of new customers who opened a 120 Day Notice Cash ISA between 1 January 2014 – 31 December 2014 were non-Muslim.
Al Rayan Bank has maintained a 25 month reign over the best buy savings tables. From 1 December 2012 until 1 January 2015, the Bank has 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 Al Rayan Bank’s savings accounts, including its Fixed Term Deposit (FTD) accounts for 12, 18 and 24 months, its regular 120 Day Notice Account and the Notice Cash ISA, have been table-topping.
Of all Al Rayan Bank’s savings products, the 24 month FTD product has spent longest at the top of the table and, like the Notice Cash ISA, has been attractive to people of all faiths. Al Rayan Bank predicts that 83% of all FTD savings customers who joined the Bank between 1 January 2014 – 31 December 2014 were non-Muslim.
The newly launched Instant Access Cash ISA is offering an expected profit rate of 0.50%, free of tax. The minimum deposit is £50, savers can make regular deposits up to the Annual Cash ISA Allowance and transfers in are allowed. Profit is calculated and accrued to the account monthly.
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. As an inclusive bank, Al Rayan Bank welcomes individuals of all faiths. The Bank was recently rebranded, following its acquisition by Masraf Al Rayan QSC (MAR), the second largest bank in Qatar by market value.
Al Rayan Bank 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.
Al Rayan Bank’s overall approach has earned it 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*.
As an Islamic Bank, Al Rayan Bank does not pay interest to its savers; instead, it offers an 'expected profit rate', which is generated by investing depositors’ funds in Sharia compliant and ethical trading activities. As part of the agreement between the customer and the Bank, Al Rayan Bank 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, Al Rayan Bank has always achieved the expected profit rate offered to its customers.
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