Al Rayan Bank has increased the expected profit rate (EPR) across the full range of its award-winning Fixed Term Deposit (FTD) savings accounts by 0.10%.
The Bank has increased the EPR of its 12 Month FTD from 2.02% to 2.12%. It has also boosted the EPR of its 18 Month FTD from 2.22% to 2.32%, its 24 Month FTD from 2.32% to 2.42% and its 36 Month FTD from 2.42% to 2.52%.
All four savings products now sit at the top if the Moneyfacts Best Buy tables^.
|Savings product||Expected rate of return*||Current best buy|
|12 Month FTD||2.22%*||2.10%|
|18 Month FTD||2.32%*||2.25%|
|24 Month FTD||2.42%*||2.35%|
|36 Month FTD||2.52%*||2.40%|
As with all of Al Rayan Bank’s products, customers’ deposits are 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.
Commenting on the increase in EPRs, Saquib Ismail, Head of Branches and Retail Deposits at Al Rayan Bank, said:
“We’re committed to providing our customers with best-in-class savings products that are not only highly competitive within the market, but also enable them to invest ethically. More and more people are looking to make the most of their money in a responsible way, particularly as we enter the New Year when savings are at the front of many people’s minds. We’re always looking for ways to do more to meet people’s demands and hope the latest increase on returns will give savers the boost they’re looking for in 2019.”
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. Profit rates are expected, although in 15 years of operation Al Rayan Bank has always paid at least the profit rate it has quoted to its customers, and is a 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.
Profits are calculated on a daily basis and are paid quarterly; they can be taken as income or reinvested.
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 estimates that over 90% of new FTD customers who joined are 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.
^ Correct as of 15 January 2018
* Where profit is taken as an income and not reinvested, EPR will be 2.20% (12 month FTD), 2.30% (18 month FTD), 2.40% (24 month FTD), 2.50% (36 month FTD)
**Al Rayan Bank is the largest Islamic bank in the UK by assets as per latest published accounts