30 June 2009 –Islamic Bank of Britain (IBB, www.islamic-bank.com) today announced it has enhanced its popular Sharia’a compliant Fixed Term Deposit account by allowing savers to take 18 or 24 month terms and earn halal profit as a quarterly income. Expected target profit rates are competitive, reaching up to 3.30% (Gross p.a)*.Customers have the option of receiving their profit every three months or retaining it in their account to be invested with the deposit amount, and receiving the combined deposit and profit on maturity.
As an Islamic Bank, IBB does not pay interest to its savers; instead, the account is based on the Islamic financial principle of Wakala (Agency Agreement) whereby IBB acts as the customer’s agent by taking their cash deposit and investing it in Sharia’a compliant and ethical trading activities for an agreed target profit rate over a fixed term. The bank manages and monitors the performance of the investments on a daily basis to minimise the risk and ensure that the customer gets the projected target profit rate.
The Fixed Term Deposit Account has therefore been designed to provide savers, with a minimum of £5,000 available funds, with a safe place to deposit their funds and receive an attractive return that is completely Sharia’a compliant. Once the account is opened customers cannot add or withdraw funds before the maturity date.
The Fixed Term Deposit Account is therefore ideal for customers who find they have a lump sum available which they would like to invest on a Sharia’a compliant and ethical basis, and receive a healthy return. Alternatively the Account is also suitable for someone who is saving for the period coming up to a special occasion, such as a Hajj trip or a wedding as well as expenditure on home renovations. Customers can leave their money with the reassurance that on maturity it has earned them a halal profit, increasing the overall value of the initial deposit.
Sultan Choudhury Commercial Director commented: “Islamic Bank of Britain’s new range of terms for the Sharia’a compliant Fixed Term Deposit Account is good news for savers looking for an ethical safe haven for their cash lump sums. The accounts also provide a competitive target rate of return, which is completely halal.”
He explained: “Most people simply save in regular easy access accounts. However, if you have a lump sum then saving it in IBB’s Fixed Term Deposit Account is ideal; it’s with an organisation that operates on a Sharia’a compliant and ethical basis and provides a stable alternative to conventional savings. Moreover, IBB offers straightforward profit to the customer, at a competitive rate. It’s the best alternative to saving in interest based accounts and one that our customers prefer as they feel their money is working in a more ethical, Islamic and meaningful way whilst at the same time providing them with an attractive return.”
The 18 and 24 month Fixed Term Deposit Account is a further addition to IBB’s array of competitive Sharia’a compliant savings products including the three, six and twelve month Fixed Term Deposit Account, Direct Savings Account, the Wakala Treasury Deposit Account, the Young Persons Savings Account and the 60 Day Notice Account.
Other features of the Fixed Term Deposit Account include:
• Available for terms of 18 and 24 months
• Available to Personal customers, Businesses, Charities and Masjids
• Deposits can be rolled over for a further term
• Profits are paid on maturity or quarterly
• Deposits may be made by cheque or by direct account transfer
• Halal and ethical returns on customers’ savings
• The account has been approved by IBB’s Sharia’a Supervisory Committee
• Available in Pounds Sterling (£) only
Based on ethical, Sharia’a compliant principles, customers of the Fixed Term Deposit Account are given a guarantee that their funds will only be invested in an ethical manner which excludes all interest bearing transactions or unethical business activities such as pornography, gambling, speculation, tobacco and alcohol.
The Islamic Bank of Britain Fixed Term Deposit Account is covered by the Financial Services Compensation Scheme.
*subject to personal taxation cirucumstances
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”.
IBB therefore offers its customers a personal, highly managed service for their savings to ensure that they receive a competitive return based on ethical principles.
Issued by Islamic Bank of Britain, Edgbaston House, 3 Duchess Place, Birmingham B16 8NH