Islamic Bank savings account offers 4% return
Wednesday, 22 February 2012 08:24
Islamic Bank of Britain is offering savers a four per cent return on money deposited within the first 60 days of opening a new savings account.
The 120 Day Notice Account can be opened with £500 upwards.
After the 60 day ‘gift’ period, the savings rate will revert to the prevailing expected profit rate which is currently two per cent, the bank said.
As well as offering competitive returns, the account is based upon ethical principles, the bank said.
As an Islamic bank, IBB does not pay interest to its savers. Instead, this rate is offered as an ‘expected profit rate’, because the bank invests the funds into Sharia compliant and ethical trading activities.
The bank monitors the target profit rate on a daily basis to ensure that it is achievable and will be able to provide the return offered to the customer.
If, at any time, market volatility is likely to affect the customer’s profit, IBB will inform them before their profit rate is affected and will offer the choice of closing the account or receiving the lower rate.
To date, IBB said it has always achieved the expected profit rate offered to its customers for this type of savings product.
To withdraw money, customers are required to give 120 days’ notice to the bank, which is authorised and regulated by the Financial Services Authority and is a member of the Financial Services Compensation Scheme.
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