Al Rayan Bank boosts returns for Fixed Term Deposit savers
Al Rayan Bank is increasing the expected profit rate (EPR) for new 18, 24 and 36 Month Fixed Term Deposit (FTD) customers. The 0.05% increase across these accounts is effective from today and will ensure that Al Rayan Bank’s savings remain highly-competitive.
The Bank is increasing the EPR of its 18 Month FTD from 1.90% to 1.95%. It is also boosting the EPR of its 24 Month FTD from 2.0% to 2.05%, and its 36 Month FTD from 2.15% to 2.20%.
Profits are calculated quarterly and can be taken as income or reinvested. For customers who choose to reinvest, the gross per annum expected return is 1.96% for an 18 month FTD and 2.07% and 2.22% for a 24 Month and 36 Month FTD respectively.
Instead of paying an interest to savers, Islamic banks, such as Al Rayan Bank, invest customers’ deposits in ethical, Sharia compliant trading activities to generate a profit, which is then shared between the customer and the Bank as per the terms of the account. Although profit rates cannot be guaranteed, in 14 years of operation Al Rayan Bank has always paid at least the profit rate it has quoted to its customers, and is a member Financial Services Compensation Scheme, which guarantees customers’ deposits up to £85,000.
Commenting on the increased FTD rates, Saquib Ismail, Head of Branches and Retail Deposits at Al Rayan Bank, said: “There are many benefits to our award-winning FTDs. They tend to pay the highest rate of profit of all our savings products and are regularly on the ‘best-buy’ tables. The high returns, coupled with the ethical nature of our investments, means we’re able to give our customers competitive and ethical options.
“It’s important for us to ensure that our products remain competitive and that we continue to support our customers in making well-informed financial decisions when it comes to their savings.”
FTDs require a minimum deposit of £1,000. Deposits may be made in cash, cheque or by direct account transfer.
As with all Al Rayan Bank’s products, the customer’s money is invested ethically. Customers are given a guarantee that their funds will only be invested in Sharia-compliant, ethical investments. These exclude all interest-bearing transactions and activities such as gambling, speculation, tobacco and alcohol.
Al Rayan Bank is the UK's oldest and largest Sharia compliant bank. It increasingly appeals to customers of all faiths and none, Indeed, it is estimated that more than a third of its customers are not of the Muslim faith.
As an independent UK bank, Al Rayan Bank is authorised by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority and the PRA.
* Al Rayan Bank is the largest Islamic bank in the UK by assets as per latest published accounts