Stearns Bank vs Jafari Credit Union
FDIC-Insured Salaam Banking vs Muslim Community Credit Union
Co-Founder, HalalWallet
Reviewed quarterly when provider data or pricing changes.
Our Verdict
Stearns Bank offers FDIC-insured Salaam Banking with commercial focus. Jafari Credit Union is a member-owned cooperative for the local Muslim community. Stearns is stronger for business banking; Jafari is built around community service. Both provide federally insured halal deposit accounts.
Side-by-Side Comparison
| Feature | Stearns Bank | Jafari Credit Union |
|---|---|---|
| Type | FDIC-insured bank | NCUA-insured credit union |
| Focus | Commercial/business banking | Personal community banking |
| Program | Salaam Banking program | Islamic banking cooperative |
| Deposit Insurance | FDIC - $250,000 | NCUA - $250,000 |
| Founded | 1912 | 2016 |
| Reach | Available remotely | Local community |
Which Should You Choose?
You need business banking with halal compliance
→ Stearns Bank- Commercial focus with FDIC-insured Salaam Banking program
You want to bank with a member-owned cooperative
→ Jafari Credit Union- Credit union model where members are owners and share in governance
You want FDIC-insured halal personal banking remotely
→ Devon Bank- For personal banking, Devon Bank may be a better fit than either
Stearns Bank vs Jafari Credit Union: the full side-by-side
22 data points from each provider's published materials, lined up row by row. They differ on 17.
22 of 22 rows
States covered
Stearns Bank: All 50 statesJafari Credit Union: Texas
APY / profit rate
Stearns Bank: 1.00%-3.20% expected APY (tiered, nonprofit preferential rates) (Salaam Nonprofit Savings) · 0.85%-2.99% expected APY (tiered); Profit-Link up to 3.20% (Savings Account) · 3.01%-3.96% expected APY by term (8/1/2026 rate sheet) (Salaam Business Certificat…)Jafari Credit Union: 0%Monthly fee
Stearns Bank: $0 EdgeJafari Credit Union: $3-$60 (sliding scale based on loans)Fee waiver conditions
Stearns Bank: No maintenance fees (Savings Account) · No minimum balance, no maintenance fees (Deposit Account)Jafari Credit Union: $3 if no loans or low loan balanceMinimum balance
Stearns Bank: No minimum EdgeJafari Credit Union: $50Minimum opening deposit
Stearns Bank: $100 (Salaam Nonprofit Savings) · $50 (Deposit Account) · $500 (Salaam Business Certificat…)Jafari Credit Union: $200
Structure
Stearns Bank: Varies by productJafari Credit Union: Qard HasanShariah oversight
Stearns Bank: Formal BoardJafari Credit Union: No Public ReviewShariah board / scholar
Stearns Bank: formal_boardJafari Credit Union: no_public_reviewPublished fatwa / certificate
SameStearns Bank: NoJafari Credit Union: NoProfit structure
Stearns Bank: Profit-sharing - derived from Islamic Banking financing portfolio (Salaam Nonprofit Savings) · Profit-sharing - Market-based returns (Savings Account) · Profit-sharing (Deposit Account) · Interest-free (non-interest-bearing) (Salaam Business Essentials…) · Profit-sharing - derived from Islamic Banking Division financing portfolio (Salaam Business Market Sav…) · Profit-sharing - published expected profit-sharing rates (Salaam Business Certificat…)Jafari Credit Union: Qard Hasan (No interest)
FDIC / NCUA insured
SameStearns Bank: YesJafari Credit Union: Yes
ATM access
Stearns Bank: Yes EdgeJafari Credit Union: NoDebit card
Stearns Bank: Yes EdgeJafari Credit Union: NoMobile app
SameStearns Bank: YesJafari Credit Union: YesOnline banking
SameStearns Bank: YesJafari Credit Union: Yes
Products listed
Stearns Bank: Salaam Nonprofit Savings, Savings Account, Deposit Account, Salaam Business Essentials Checking, Salaam Business Market Savings, Salaam Business Checking +2 moreJafari Credit Union: Savings AccountBest for
Stearns Bank: Business financing expertiseJafari Credit Union: True 0% interest, NCUA insuredAccount types
Stearns Bank: Nonprofit Savings, Savings, Deposit Account, Business Checking, Business Savings +2 moreJafari Credit Union: Savings
HalalWallet Index grade
Stearns Bank: B EdgeJafari Credit Union: B-Founded
Stearns Bank: 1912 EdgeJafari Credit Union: 2016Google rating
Stearns Bank: Not listedJafari Credit Union: 4.9/5 (8 reviews)
Edge marks the side with the better listed number on measurable rows (lower fee, wider coverage, higher grade). It is not a verdict - a provider can win more rows and still be the wrong fit for you.
Strengths and trade-offs
Stearns Bank
- Interest-free, profit-sharing returns for nonprofits
- Designed for organizations like schools and mosques
- FDIC insured, with documented options to extend coverage beyond $250,000
- Documented $100 minimum opening deposit
- Reviewed and approved by an independent Sharia Supervisory Board
- Expected profit rates float with the Islamic financing portfolio - no contractual guarantee
- Meaningful yield requires scale: balances under $100,000 earn 1.00% expected APY
- Offered through a conventional bank's Islamic banking division rather than a standalone Islamic institution
- Expected profit rates can change and are not contractually guaranteed - returns track the Islamic financing portfolio
- The best tiers require scale: under $100,000 the standard expected APY is 0.85%
Jafari Credit Union
- NCUA federally insured up to $250,000 (charter detail #68675)
- True 0% model: deposits directly fund interest-free community loans
- Low barrier: $200 to open with a $50 minimum balance
- Payable-on-death designation built into the account card
- Member-owned nonprofit with quarterly financials public via NCUA
- Pays no return of any kind - this is community finance, not savings growth
- Monthly fee of $3 to $60 depending on your loan-to-savings position
- ACH only: no cash handling, ATM, debit card, or checking services
- Membership restricted to Jafari (Shia) community members of three Texas centers and their relatives
- Small scale: 365 members and about $2.19M in deposits as of March 2026 (company-reported)
Products behind the numbers
Where a row shows more than one value, it is because the provider lists several bank accounts products. Each is tagged.
Stearns Bank (8)
Jafari Credit Union (1)
- Savings AccountDetails
Understand the evidence behind this comparison
Prefer a ranked pick for your situation? See our evidence-backed guides:
Stearns Bank Full Review
Pros, cons, rates & details
Jafari Credit Union Full Review
Pros, cons, rates & details
Not sure which is right? Compare all Bank Accounts providers.
Browse All Bank Accounts OptionsFrequently Asked Questions
What is Salaam Banking?
Salaam Banking is Stearns Bank's program offering Shariah-compliant financial products developed in partnership with Islamic scholars, within an FDIC-insured institution.
Can I get a halal mortgage from either?
No. Neither Stearns Bank nor Jafari Credit Union offers halal home financing. For that, look at Devon Bank (Murabaha, 34 states), Guidance Residential, UIF, or Ijara CDC.
Which is better: Stearns Bank vs Jafari Credit Union?
Stearns Bank offers FDIC-insured Salaam Banking with commercial focus. Jafari Credit Union is a member-owned cooperative for the local Muslim community. Stearns is stronger for business banking; Jafari is built around community service. Both provide federally insured halal deposit accounts.
- You need business banking with halal compliance: Stearns Bank - Commercial focus with FDIC-insured Salaam Banking program
- You want to bank with a member-owned cooperative: Jafari Credit Union - Credit union model where members are owners and share in governance
- You want FDIC-insured halal personal banking remotely: Devon Bank - For personal banking, Devon Bank may be a better fit than either
Source: HalalWallet (halalwallet.us)
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Sources and review process
This page is reviewed against HalalWallet editorial standards and source documentation.
Reviewed by: HalalWallet Editorial Team
Last reviewed: March 2026
How to cite this page
How to use this comparison: Scholars rule; we organize the evidence. HalalWallet is an independent educational comparison platform - by design, we do not issue fatwas or provide financial, legal, or tax advice. We do the research homework so your final checks are quick and personal. Where our role ends and who takes over.
Product structures and Shariah oversight vary by provider, so finish with three built-in steps:
- Confirm current terms and halal compliance directly with the provider - their quote is final.
- Review the contract structure (Murabaha, Ijara, Musharakah, etc.) and any disclosed Shariah board opinions.
- Bring your shortlist to a qualified Islamic finance advisor or scholar, so the conversation is about your situation, not the basics.
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