Al Rayan Bank returns to the top of the fixed term savings charts
Al Rayan Bank has increased the expected profit rate (EPR) for its market-leading Fixed Term Deposit (FTD) savings accounts.
The Bank has increased the EPR of its 18 Month FTD from 2.05% to 2.20%. It is also boosting the EPR of its 24 Month FTD from 2.15% to 2.30% and its 36 Month FTD from 2.25% to 2.40%. Profits are calculated on a daily basis and are paid quarterly, taken as income or reinvested.
The latest boost to the rate of return brings the Bank’s 24 and 36 Month FTD products back to the top of the savings table.
|Savings product||Current expected rate of return||Expected rate of return if reinvested||Previous rate|
|18 Month FTD||2.20%||2.22%||2.05%||Find out more|
|24 Month FTD||2.30%||2.32%||2.15%||Find out more|
|36 Month FTD||2.40%||2.42%||2.25%||Find out more|
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.
The Bank won ’Best Fixed Account Provider’ - the prestigious Moneyfacts award - last year for its FTD products. The latest boost to the rate of return brings the Bank’s 24 and 36 Month FTD products to the top of the savings table.
“We’re not only committed to investing customers’ money in an ethical way, we’re also committed to delivering best-in-class savings products that remain competitive within the market. We’re always looking for ways to deliver more to our savers and we’re proud that our customers can make the most of their money in responsible way.”Commenting on the increase in EPRs, Saquib Ismail, Head of Branches and Retail Deposits at Al Rayan Bank, said:
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; the Bank is also member of the Financial Services Compensation Scheme, which guarantees customers’ deposits up to £85,000.
FTDs require a minimum deposit of £1,000. Deposits may be made in cash, cheque or by direct account transfer.
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 over 90% of FTD customers who joined the Bank last year were non-Muslim.
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