Market-leading* FTD rates attract record numbers of non-Muslim customers to Al Rayan Bank
As it enters its fourth year topping the UK savings tables**, Al Rayan Bank has announced that 86% of new fixed term deposit (FTD) customers which joined the Bank in 2015 are believed to have been non-Muslim.
With an expected profit rate of 2.78%^, Al Rayan Bank’s 24 Month Fixed Term Deposit is 0.38% above that of its closest challenger. The Bank’s market-leading FTD range also includes accounts for customers wishing to invest for 36, 18 and 12 months, as well as through a 12 month cash ISA. These highly attractive rates of return, together with the security offered by Al Rayan Bank’s membership of the Financial Services Compensation Scheme (FSCS), are believed to be driving factors behind the Bank’s strong appeal to non-Muslim customers.
Tim Sinclair, Senior Head of Marketing & Retail Sales for Al Rayan Bank explains why an increasing number of non-Muslims in the UK are choosing to bank with the organisation, “Over the last few years, we have seen significant growth in our non-Muslim customer base. This increase has been driven by Al Rayan Bank’s consistent, market-leading expected profit rates, our excellent levels of customer service and the overall reputation that Islamic banking enjoys as an ethical alternative to conventional banking, as well as the fact that, like all regulated UK banks, Al Rayan Bank savers are covered by the FSCS.”
Islamic banking is based upon a more equitable system of finance than conventional interest-based banking, one based on risk and reward sharing. Each product offered by Al Rayan Bank uses specific Islamic finance principles. These are derived from trade, entrepreneurship and partnership in which the customer and Bank work together towards a mutually profitable end. The whole premise of Islamic finance is to provide a way for society to conduct its finances in a fair, ethical and socially responsible manner.
Like all Islamic banks, Al Rayan Bank pays ‘expected profit’ to its customers, rather than ‘guaranteed interest’. As such there is technically a small element of risk, which is shared between the customer and the Bank. However, in twelve years of operation, Al Rayan Bank has always achieved at least the profit rate it has quoted to its customers, and on some types of accounts it has frequently paid more.
Al Rayan Bank has 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 also an accredited ‘Living Wage Employer’, voluntarily opting to pay its employees a ‘Living Wage’ which is significantly higher than the current minimum wage and the new compulsory National Living Wage, to be introduced this year. In addition, the Bank was recently accredited as an ‘Investors in People’ organisation, demonstrating the signs of a great employer with a clear commitment to sustainability.
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. Al Rayan Bank savers are covered by the UK Financial Services Compensation Scheme, which currently protects eligible depositors’ savings up to £75,000.
* Moneyfacts 2 year fixed rate bonds: http://moneyfacts.co.uk/savings/2-year-fixed-rate-bonds/
** From 1 December 2012 until January 2016 at least one of Al Rayan Bank’s savings accounts offered the UK’s highest rate of return, according to the Moneyfacts best buy tables.
^ The 2.78% expected profit rate on the 24 month FTD is paid to customers that choose to reinvest their quarterly profit for the entire term. For those that choose to take their profit quarterly, the expected return is 2.75% (gross per annum).