Islamic Bank of Britain offers 4.5% on savings

by Richard Kilner

Story link: Islamic Bank of Britain offers 4.5% on savings

The Islamic Bank of Britain (IBB) has stated that its new Fixed-Term Deposit Account will have an impressive target profit rate of 4.5%, beating rates offered by the average high street bank in the UK.

Customers opting for the 24 month Fixed-Term Deposit Account will enjoy 4.5% per annum (gross), and those preferring an 18 month period will earn 4% gross per annum.

Customers will be offered the choice of receiving the profit every three months or having it invested in the account and receiving both the deposit and profit upon maturity.

The money added is not interest, but based on the principle of Wakala (Agency Agreement) which sees the cash invested in Sharia’a compliant and ethical trading activities, which are monitored daily to minimise risk.

The minimum deposit is £5,000, and this cannot be added to or withdrawn before maturity occurs.

Commercial Director Sultan Choudhury has stated that the new product offers a combination of competitive rates and an ethical approach to investment.

Earlier in the year, the IBB was named as the Best Islamic Financial Institution in the UK by Global Finance magazine, in recognition of its predominant position within the country’s Islamic banking sector.