Al Rayan Bank regains place at top of fixed-rate savings tables
Al Rayan Bank regains place at top of fixed-rate savings tables
2 February 2021
Al Rayan Bank has increased the expected profit rate (EPR) across the full range of its award-winning Fixed Term Deposit (FTD) savings accounts by up to 0.50%.
The Bank has increased the EPR of its 12-month, 18-month, 24-month and 36-month FTD accounts, exceeding the return paid by its closest competitor by between 0.05% and 0.14%^.
All four savings products now sit at the top if the Moneyfacts Best Buy tables^.
|
Expected rate of return* |
Expected rate of return (when profit is reinvested) |
|
|
12 Month FTD |
0.85% |
0.85% |
|
18 Month FTD |
0.90% |
0.90% |
|
24 Month FTD |
1.15% |
1.15% |
|
36 Month FTD |
1.30% |
1.31% |
FTDs require a minimum deposit of £5,000. Deposits may be made in cash, cheque or by direct account transfer.
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, Islamic banks, such as Al Rayan Bank, invest customers’ deposits in ethical, Sharia compliant trading activities to generate a profit, which is then shared between the customer and the Bank as per the terms of the account. Profit rates are ‘expected’, although in 17 years of operation Al Rayan Bank has always paid at least the expected profit rate it has quoted to its customers. All customer deposits are protected under the Financial Services Compensation Scheme, which guarantees customers’ deposits up to £85,000.
How Islamic 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.
Al Rayan Bank is the UK's oldest and largest Sharia compliant bank. It increasingly appeals to customers of all faiths and none, Indeed, the majority of new customers who join the Bank are believed to be non-Muslim.
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 2 February 2021