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Friday, 3 July 2009

Halal profits with Islamic Bank of Britain

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.

(The Asian News)
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