Al Rayan Bank has announced a new Charities’ Notice Savings’ Account, for charities, masjids, and non-profits in the UK.
The account provides charities with the flexibility to respond to emergencies, such as funding relief efforts in the event of a natural disaster, whilst at the same time enabling them to earn a return on their funds.
The account has a 100-day notice period, which enables charities to earn an expected profit rate of 1.4% gross per annum on their savings. However, it also allows the withdrawal of up to 20% of the outstanding balance immediately, without penalty.
Any amount between £50,000 and £20m can be invested, with no penalty if the balance falls below £50,000. Profit is paid monthly and within a 12-month period charities can either make one withdrawal of 20% of the account balance, or two separate withdrawals, to a total of 20% of the balance.
Sultan Choudhury, CEO of Al Rayan Bank said:
“Many charities by their very nature require instant access to their funds. In order to safeguard this accessibility, they have often needed to put their reserves into instant access accounts, meaning that they don’t benefit from the higher levels of return associated with longer term accounts, such as notice accounts. Our new Charities’ Notice Savings Account offers the best of both worlds, underpinned by an ethical finance model.”
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