Tuesday, August 9, 2011

UK - 4% return offered from Islamic Bank of Britain

Islamic Bank of Britain today announced a limited period profit rate of 4% returns for its 24 month Fixed Term Deposit Account.

Topping the ‘Best Buy’ tables, the account is currently beating the returns being offered by high street banks across the UK.  (source)


As an inclusive bank, IBB welcomes savers of all faiths.  The minimum deposit for savers wishing to snap up the limited offer rate is £1,000.  IBB is authorised and regulated by the Financial Services Authority and is a member of the Financial Services Compensation Scheme. 

The 24 month FTD account paying 4% profit rate from IBB is expected to be very popular.  As well as offering competitive returns the product is based upon ethical principles.  

With the IBB Fixed Term Deposit Accounts customers have two options:

- Receiving their profit every three months 

- Retaining the profit in their account, to be invested with the deposit amount.  Customers will receive the combined deposit and profit on maturity

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 depositors’ funds into Sharia compliant and ethical trading activities. 

These activities deliver a profit over the agreed, fixed term, which in this case is 24 months.  

As part of the agreement between the customer and the Bank, IBB monitors the target profit rate on a daily basis to ensure it is achievable and will provide the return offered to the customer. 

If, at any time, market volatility is likely to affect the customer's profit the Bank will inform him/her before his/her rate is affected. IBB then offers the customer a choice to close the account or receive the lower rate of profit. 

The profit achieved prior to this will remain protected, as will the original capital they deposited with the Bank. To date, for this type of savings product, IBB has always achieved the expected profit rate offered to its customers. 

The Fixed Term Deposit Account has therefore been designed to provide savers, who have a minimum of £1,000 available funds, with a safe place to deposit their funds and receive an attractive return.  Once the account is opened the customer cannot add or withdraw funds before the maturity date.

Source : http://www.myintroducer.com/view.asp?ID=7648  - Aug 8, 2011

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