Islamic mortgage provider offers best bond rate

Mon, 05 Sep 2011
A national newspaper has highlighted the benefits of a bond scheme from Islamic mortgage provider the Islamic Bank of Britain (IBB).

The lender is offering its Sharia Super Saver deal at four per cent for those who deposit their cash for a 24-month period.

This could rise to 4.06 per cent if the customer agrees to re-invest income on a monthly basis.

However, as with all Islamic mortgages and other financial products, there is no interest involved.

The earnings come from the IBB's portfolio of carefully selected Sharia-compliant and ethical trading opportunities.

According to the Telegraph, the bond is one of the best on the market, but is not for everyone as the earnings are not guaranteed in the same way that a typical interest-paying offer would be.

"Though this table-topping rate is appealing and capital is protected, savers must ensure they completely understand the process behind the IBB bond," the publication warned.

"If you cannot afford for your cash to not earn interest, it may be better to opt for a lower - but guaranteed - rate of interest elsewhere."

Islamic mortgages help Muslims comply with Sharia laws by allowing them to pay for their home in instalments that do not have interest added.
Salaam-u-Allaikum
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