The Islamic Bank of Britain (IBB) has launched its first Sharia’a-compliant Fixed Term Deposit Account.
The new account is based on Wakala’s principles of agency agreement, and is the first Fixed Term Deposit Account that accords with Sharia’a in the UK.
Terms can last from three months to one year (with the option to continue for longer), and the account has been designed to deliver high returns and flexibility.
The new account follows in the wake of the successful 60 day Notice Account, and has been launched to a provide a similar facility over a longer term.
A minimum £5,000 deposit is required, with profits of varying degrees in line with how long the term is and fully compliant with Sharia’a.
The investments made from the funds are also in accordance with Sharia’a, and will not involve interest bearing transactions or businesses in pornography or alcohol.
Commercial director Sultan Choudhury has described the account as an ethical safe haven for the savers of the UK with a high rate of return.