Notice Account offers 6% expected profit rate, inclusive of Eid Gift
until December 31st 2008 **
15 December, 2008 – Islamic Bank of Britain (IBB, www.islamic-bank.com) today announced another industry first with the launch of its Sharia’a compliant 60 Day Notice Account, based on the Islamic financial principle of Wakala, requiring only a minimum deposit of £250.
Designed to encourage savings for a ‘rainy day’, IBB has launched the Notice Account with a ‘credit crunch busting’ introductory target profit rate of 6%, until 31st December 2008. This high profit rate is inclusive of a 3% Eid gift from IBB, thereafter, a target profit rate of 3%.
Under the Wakala agreement IBB will issue a target profit rate at the beginning of each month and at the end of the month will calculate the actual profit which then will be paid to account holders**. All profit payments are made to customers in line with Sharia’a principles.
With easy access savings provided by IBB’s Direct Savings Account, the newly launched Notice Account gives customers a higher rate of return, while still giving the flexibility to make incremental deposits of any amount, at any time.
Other features of the Notice Account include:
- Withdrawals available through post, branch, telephone and online
- Notice can be given through post, branch, telephone and online
- Withdrawals via cheque, cash or to a nominated account (internal or external)
- Quarterly Statements
- Ability to check account balance online or by phone
Based on ethical, Sharia’a compliant principles, customers of the Notice Account are given a guarantee that their funds will only be invested in a Sharia’a compliant manner which excludes all interest bearing transactions or unethical business activities such as pornography, gambling, speculation, tobacco and alcohol.
Sultan Choudhury Commercial Director commented: “Islamic Bank of Britain’s Notice Savings Account is a fantastic product for British banking customers; it allows consumers who have hard earned money that they do not need access to straight away, to be deposited somewhere safe and stable, earning them a great profit that is ethically sound.”
Choudhury added,”Despite the recent market turmoil Islamic Banking is considered by many as a stable alternative to conventional finance and the Notice Savings Account, along with our other fantastic products and profit rates, gives British Muslims and non-Muslims another great reason to turn to the Islamic Bank of Britain.”
The Islamic Bank of Britain 60 Day Notice Account is covered by the Financial Services Compensation Scheme.
ENDS
NOTES:
** Unlike conventional ‘interest paying’ deposit accounts, IBB does not pay interest on the 60 Day Notice Account. Instead, based on the Islamic finance principle of Wakala, the Bank acts as the customer’s agent, and on their behalf places the deposit amount, at its own discretion, in Sharia’a compliant transactions.
About Islamic Bank of Britain
Islamic Bank of Britain has pioneered Sharia’a compliant retail banking in the UK and has launched a wide range of products, including Current Accounts, Savings Accounts and Personal Finance. The bank was also the first to introduce Sharia’a compliant Business banking to the UK, and now offers a wide range of institutional and Business banking products and services, including Commercial Property Finance.
Several of the bank’s products remain unique in the UK retail market.
The bank is authorised and regulated by the Financial Services Authority and meets UK banking regulations and strict safeguards for customer deposits. All products offered by the bank are fully approved by the bank’s Sharia’a Supervisory Committee (SSC).
Sharia’a compliant banking operates without the use of interest. The products that are offered are structured in a different way to those provided by conventional banks.
Whilst the bank offers products and services that are designed in accordance with Sharia’a principles, it is an inclusive bank and welcomes customers of all faiths.
Notes to editors:
Interviews with Islamic Bank of Britain are available on request.
The bank should only be referred to as “Islamic Bank of Britain”. If abbreviated please use “IBB”.
ENDS
Issued by Islamic Bank of Britain, Edgbaston House, 3 Duchess Place, Birmingham B16 8NH