The account is the UK’s first Sharia compliant cash ISA and offers consumers an ethical, tax-free way to save. It means that Muslim consumers who prefer to receive a Sharia compliant return on their savings no longer need to miss out on the tax efficient benefits of an ISA, or compromise on their beliefs by placing their deposits in interest-based products.
The IBB Notice Cash ISA is offering an expected profit rate of 1.8%, free of tax. In order to receive this level of return from a savings account where tax is deducted, a basic rate tax payer would need to place their deposit into an account offering 2.25% and a higher rate tax payer would need to save it into an account offering 3.00%. The minimum deposit for the IBB Notice Cash ISA is £250 and requires savers to give 120 days’ notice in order to make a withdrawal. Savers can make regular deposits, and profit is calculated and accrued to the account monthly.
The launch kicks-off celebrations by the Bank to mark its 10 year anniversary. IBB opened its doors as the UK’s only wholly, Sharia compliant retail bank in 2004 and now offers the largest range of Islamic retail financial products in the UK.
With an expected profit rate of 1.8%, IBB’s Notice Cash ISA will maintain the Bank’s 13 month reign over the best buy savings tables. From 1st December 2012 until 1st December 2013, IBB consistently offered at least one savings account with the UK’s highest rate of return, according to the Moneyfacts best buy tables. Often more than one of IBB’s savings accounts, including the Fixed Term Deposit account for 12, 18 and 24 months and its regular 120 Day Notice Account, was table-topping.
This has significantly increased IBB’s appeal amongst non-Muslim savers. The Bank estimates that for the period 1st December 2012 – 1st December 2013, 87% of applications for its Fixed Term Deposit Accounts were from non-Muslim customers. IBB’s exemplary customer service and ethical foundations have also drawn a number of customers seeking a bank with a genuinely good approach to banking.
