Islamic Bank of Britain has 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.
Commercial
director, Sultan Choudhury said: “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.”
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.
