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Al Rayan Bank launches instant access Isa

Al Rayan Bank launches instant access Isa

An Islamic bank has announced the launch of an instant access cash Isa.

Al Rayan Bank, formerly known as Islamic Bank of Britain, is offering the Isa with an expected rate of 0.5 per cent free of tax, for savers making a minimum deposit of £50.

Transfers are allowed and savers can make regular deposits up to the annual cash Isa allowance of £15,000.

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Al Rayan Bank does not pay interest to its savers. Instead, it offers an expected profit rate, generated by investing depositors’ funds into Sharia-compliant and ethical trading activities.

Profit is calculated and accrued to the account each month.

The bank works to faith-based principles, with a focus on trade, entrepeneurship and risk-sharing.

Because of its ethical principles, the bank does not invest in activities it deems unethical such as gambling, pornography, speculation, tobacco and arms.

Al Rayan Bank’s latest product launch follows the introduction of its 120-day notice cash Isa.

Adviser view

Pete Matthew, managing director of Cornwall-based Jacksons Wealth Management, said: “Ethical concerns seem to be on the rise so hopefully people do not dismiss this because they are not Muslims.”