Stearns Bank Deposit Account

Stearns Salaam Banking is a dedicated Islamic division of Stearns Bank N.A., a nationally chartered, FDIC-insured bank headquartered in St. Cloud, Minnesota that operates nationwide. That charter is the division's defining feature: nearly every other US halal provider is a non-bank finance company or fintech, while Salaam customers get riba-free products inside a regulated bank — with standard Truth in Savings disclosures and FDIC insurance, including customized options to extend coverage beyond the $250,000 limit.

The deposit mechanism is the core innovation. Salaam funds are not invested in interest-bearing instruments and are kept separate from the bank's conventional interest-bearing deposits; depositors instead earn an 'Expected Profit Rate' derived from the performance of Stearns Bank's Islamic Banking financing portfolio. The rate sheet (effective 7/1/2026) shows Market Savings tiers from 0.85% to 2.99% expected APY, Profit-Link savings up to 3.20%, nonprofit savings up to 3.20%, and profit-sharing CDs from a $500 minimum at 3.00–3.96% expected APY. Shorter CDs (3 and 6 month) carry no early-withdrawal discount; 12- and 18-month terms may apply one.

The account lineup covers personal (checking from $50 with fee waivers on three international wires a month, Market Savings, CDs), business (checking, higher-volume Essentials, Market Savings, CDs — all from $100), and a genuinely differentiated nonprofit program: mosques and Islamic schools get free unlimited ACH origination, free incoming wires, five fee-refunded international wires monthly, no minimum balances, plus a $1,000 donation after maintaining a savings account for 12 months and $250 after each subsequent year.

In 2026 the division launched Salaam Profit-Link Market Savings, which channels a customer-chosen portion (minimum 25%) of expected monthly returns to nonprofits — and pays a notably higher expected rate than the standard savings account on balances under $500,000 (2.00% vs 0.85–1.95%). A launch promotion pays a $200 bonus for accounts opened and enrolled by 9/30/2026 that maintain a $1,000 average balance through six consecutive monthly donations.

On the financing side, Salaam offers sharia-compliant commercial real estate acquisition and refinancing, ground-up construction financing (with the bank's construction team managing draws and budget reviews), secured lines of credit for working capital, and equipment financing across industries like hospitality, medical, and manufacturing — including facility and equipment financing for mosques and schools. The critical boundary, stated verbatim on the site: Stearns does 'not currently provide sharia-compliant financing for personal homes,' financing only commercial and investment properties. Homebuyers must look to Guidance Residential, UIF, or IjaraCDC.

Leadership signals institutional commitment rather than a side program: division president Irshad Rasheed sits on the bank-wide leadership roster, bank president Heather Plumski sits on the Islamic Finance Advisory Board alongside Dr. Aamir Rehman (former head of strategy for HSBC Amanah, UNDP senior advisor on Islamic finance) and attorney Wazhma Sadat, and the Salaam division is the only product unit given its own governance section on the corporate about page. The division also sponsors the PBS docuseries 'American Muslims: A History Revealed.'