Fair, the first halal-certified neobank in the U.S., today announced the launch of a wealth-building investment feature for its members at no additional cost: high-yield accounts that can return annual dividends of up to 4%. With more than half of Americans lacking an adequate emergency fund, this rate could be a game-changer for many.
According to NerdWallet, the best savings accounts are currently only paying consumers between 0.2% and 0.6%. In contrast, Fair wealth-building accounts can earn up to 4% annually in dividends, about tenfold higher. The specific return is based on the balance in the wealth-building account, and it’s paid monthly based on the average daily balance for that month.
“Fair is continually providing our members with new ways to put their money to work and accumulate wealth,” Fair CEO & Founder Khalid Parekh said. “We will continue expanding our neobank platform to create more value for a flat fee with no hidden costs, and to enhance our member’s path to financial security and freedom.”
The Difference of Dividends
“In order to meet halal requirements, a bank account must not earn interest,” explained Samuel Golden, Fair Board Member and former Ombudsman at the Office of the Comptroller of the Currency. “Instead, Fair pays dividends, a form of profit-sharing based on assets generated from the investment of pooled funds. Fair Invest, a subsidiary of Fair, will not pass principal losses to its members and based on funding tiers, provide up to 4% annual dividends paid monthly.”
These SIPC-insured wealth-building accounts from Fair allow members to generate a high yield. In addition, their money in the account is liquid and not locked in for a specific timeframe. Members also earn dividends no matter how long their money is in the account and can withdraw it at any time.
Membership enrollment is available at bankwithfair.com, and the Fair mobile app can be downloaded in the Apple App Store and Google Play Store. Fair membership can be completed with a social security number or a government-issued ID, such as a valid passport or driver’s license. Memberships are $69 a year or $6.99 a month. Fair also offers a lifetime membership for a one-time fee of $99 until December 31, 2021.
Fair is an ethical, socially responsible neobank and digital financial services platform. Fair offers halal-certified, membership-based services to eliminate unannounced fees that can prevent financial freedom and savings opportunities. Dedicated to values that place people over profit, Fair practices socially responsible investing (SRI), environmental, social, and corporate governance (ESG) investing and is halal-certified through AAOIFI. Fair donates 2.5% of its profits to global refugee causes and racial economic empowerment initiatives. Fair banking services are provided by Coastal Community Bank, member FDIC.
The company also offers remittance services to its customers in North America.
Investment and retirement services will be provided by Fair Invest, LLC.
Terms and conditions apply and can be found at bankwithfair.com. Connect with @bankwithfair on Facebook, Twitter, Instagram, and LinkedIn.