Al Rayan Bank boosts Fixed Term Deposit expected profit rates for personal and business accounts
Al Rayan Bank has increased the expected profit rate (EPR) for its award-winning Fixed Term Deposit (FTD) savings accounts.
The EPR increase applies to the Bank’s personal and business FTDs, specifically its 12 month, 18 month, 24 month and 36 month FTD accounts, bringing its 24 and 36-month accounts to the top of the Moneyfacts Best Buy tables*
|
Previous expected rate of return* |
Expected rate of return as of 7th September |
|
|
0.55% |
1.45% |
|
|
0.60% |
1.55% |
|
|
0.65% |
1.76%** (best buy) |
|
|
0.90% |
1.81%** (best buy) |
FTDs require a minimum deposit of £5,000. Deposits may be made in cash, cheque or by direct account transfer. Customers can access their accounts via Al Rayan Bank Digital Banking, which can be accessed through the Bank’s Mobile Banking app or Desktop Portal.
Profits are calculated on a daily basis and are paid quarterly; they can be taken as income or reinvested.
Expected profit rates
Instead of paying an interest to savers, Al Rayan Bank as an Islamic bank, invests customers’ deposits in ethical, Sharia compliant activities to generate a profit. Al Rayan Bank does this either by becoming an agent of the customers and receiving an agreed agency fee and/or incentive, or by entering into a partnership with customers and sharing the risk and reward. Profit rates are expected, since it was founded in 2004 Al Rayan Bank has always paid at least the profit rate it has quoted to its customers. The Bank is also a member of the Financial Services Compensation Scheme, which guarantees eligible depositors savings up to £85,000.
How Sharia compliant finance investments work
As with all of Al Rayan Bank’s products, customers’ deposits are invested ethically. Customers are given a guarantee that their funds will only be invested in Sharia-compliant, ethical investments. These exclude all interest-bearing transactions and activities such as gambling, speculation, tobacco and alcohol.
As an independent UK bank, Al Rayan Bank is authorised by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority and the PRA.
*Correct as of 6th September 2021
**Profit shown when reinvested. When taken profit is taken as income the 24 month FTD EPR is 1.75% and the 36 month EPR is 1.80%.
