Bank Accounts · Stearns Bank
Stearns Bank Salaam Business Certificate of Deposit
Co-Founder & CEO, HalalWallet
Facts are re-verified against Stearns Bank's published materials; this page updates when the provider's terms, rates, or coverage change.
A profit-sharing business certificate of deposit from Stearns Salaam Banking, the Islamic banking division of Stearns Bank N.A. (Member FDIC). The 10/1/2026 rate sheet publishes expected APYs by term: 3.90% for 3 months, 3.94% for 6 months, 3.85% for 12 months, and 3.66% for 18 months, all from a $500 minimum opening deposit. The 3- and 6-month terms can be funded throughout the term and carry no early-withdrawal discount; 12- and 18-month terms may apply a discount for early withdrawal - sharia-structured pricing language rather than an interest penalty. Profit is paid at maturity with annual compounding.
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What is the Stearns Bank Salaam Business Certificate of Deposit?
A. (Member FDIC).
- Contract structure: Varies by product.
- Expected profit: 3.01%-3.96% expected APY by term (8/1/2026 rate sheet).
- Available in all 50 states.
- Shariah oversight disclosed: Formal Board.
- HalalWallet Index grade for Stearns Bank in Bank Accounts: A-.
- Verified against Stearns Bank's published materials on 2026-10-07.
Source: HalalWallet (halalwallet.us)
Key facts
- Structure
- Varies by product
- Account type
- Business CD
- Expected profit / APY
- 3.01%-3.96% expected APY by term (8/1/2026 rate sheet)
- Profit structure
- Profit-sharing - published expected profit-sharing rates
- Minimum opening deposit
- $500
- FDIC insured
- Yes
- Mobile app
- Yes
- Online banking
- Yes
- Availability
- all 50 states
- Shariah oversight
- Formal Board
- Provider founded
- 1912
- Last verified
- 2026-10-07
Facts are taken from Stearns Bank's published product materials and were last verified on 2026-10-07. Fields the provider does not publish are omitted rather than estimated.
Our take
The Salaam Business CD delivers what most halal savers assume does not exist: a published, competitive, riba-free term rate inside an FDIC-insured bank. The current sheet (effective 8/1/2026) pays best at the short end - 3.96% expected APY for 3 months against 3.01% for 18 - so laddering short makes more sense than locking long right now. The $500 minimum is accessible, the 3- and 6-month terms are flexible (fundable mid-term, no early-withdrawal discount), and profit-sharing framing is documented with signed Sharia Supervisory Board certificates rather than marketing gloss. Remember the structural honesty in the fine print: these are expected profit rates that can be re-set, not contractual interest. For business reserves with a defined horizon, this is the strongest published riba-free term offer in the US market.
Strengths
- Profit-sharing returns instead of interest
- Documented no-withdrawal-penalty terms
- Documented $100 minimum opening deposit
- FDIC insured, with documented options to extend coverage beyond $250,000
- Reviewed and approved by an independent Sharia Supervisory Board
Watch-outs
- Published rates are expected profit-sharing rates, not contractually guaranteed returns
- Unusual rate curve: shorter terms currently pay more than longer ones (3.96% at 3 months vs 3.01% at 18)
- Offered through a conventional bank's Islamic banking division rather than a standalone Islamic institution
Is the Stearns Bank Salaam Business Certificate of Deposit halal?
The Salaam Business CD applies profit-sharing to a fixed term: from a $500 minimum, businesses commit funds and receive an Expected Profit Rate - annual-compounding profit paid at maturity, derived from the Salaam program's segregated Islamic financing portfolio rather than an interest obligation. The Sharia structuring shows in the details: 3- and 6-month certificates can be funded throughout the term and carry no early-withdrawal discount at all, while the 12- and 18-month terms use 'discount' language - a reduction in price rather than a conventional interest penalty - if funds exit early. Two caveats an honest reading requires. First, the marketing says 'no withdrawal penalties' while the official rate sheet reserves a discount for early withdrawal on the longer terms - the rate sheet is the binding document. Second, the published June 2024 Certificate of Sharia Compliance from the division's three-scholar Sharia Supervisory Board (Mufti Ibrahim Essa, Shaykh Taha Abdul-Basser, and Mufti Mirza-Zain Baig) names Salaam checking and savings accounts; the division states all deposit and financing products are board-reviewed, but the CD is not separately named in a published certificate. The board's review basis - AAOIFI Sharia Standards and the decisions of Islamic jurisprudence academies - and FDIC insurance through Stearns Bank N.A. apply across the deposit family.
Shariah oversight disclosed by Stearns Bank
Independent Sharia Supervisory Board reviews products (Mufti Ibrahim Essa + others). Board approved deposit & financing products.
HalalWallet reports the Shariah documentation a provider publishes. We do not issue certifications; consult a qualified scholar for a personal ruling.
What you get
- Profit-sharing certificate of deposit from a $500 minimum opening deposit
- 3- and 6-month terms fundable throughout the term with no early-withdrawal discount
- 12- and 18-month terms may carry a 'discount' for early withdrawal - Sharia-structured pricing language, not an interest penalty
- Expected Profit Rate quoted upfront on the published rate sheet; profit paid at maturity with annual compounding
- FDIC-insured through Stearns Bank N.A.
Cost and terms
Expected APY by term (rate sheet effective 8/1/2026, verified 2026-08-05): 3 months 3.96%, 6 months 3.78%, 12 months 3.50%, 18 months 3.01%. $500 minimum opening deposit. 3- and 6-month terms fundable throughout with no early-withdrawal discount; 12- and 18-month terms may carry a discount for early withdrawal. Profit paid at maturity, annual compounding. Expected profit rates, not guarantees.
How it compares
Other bank accounts providers we list in the U.S., ordered by HalalWallet Index grade.
| Product | Structure | Shariah oversight | Availability | Grade |
|---|---|---|---|---|
| Stearns Bank Salaam Business Certificate of Deposit (this page) | Varies by product | Formal Board | all 50 states | A- |
| Bank of Whittier RF Certificate of Deposit | RF (Riba Free) term deposit | Third-Party Certified | all 50 states | — |
| UIF Deposit Account | Mudarabah | Formal Board | all 50 states | A |
| Jafari Credit Union Savings Account | Qard Hasan | No Public Review | Texas | — |
Other Stearns Bank products
- Salaam Nonprofit Checking
Bank Accounts · Varies by product
- Savings Account
Bank Accounts · Varies by product
- Secured Line of Credit
Business Financing · Varies by product
- Deposit Account
Bank Accounts · Varies by product
- Salaam Business Essentials Checking
Bank Accounts · Varies by product
- Equipment Financing
Business Financing · Varies by product
- Construction Financing
Business Financing · Varies by product
- Salaam Business Checking
Bank Accounts · Varies by product
- Salaam Nonprofit Savings
Bank Accounts · Varies by product
- Salaam Business Market Savings
Bank Accounts · Varies by product
- Commercial Real Estate Financing
Business Financing · Varies by product
Where it's available
Stearns Bank lists the Salaam Business Certificate of Deposit as available in all 50 states.
Availability may vary by product and can change; verify with Stearns Bank before applying.
Frequently asked questions
Is the Stearns Bank Salaam Business Certificate of Deposit halal?
The Salaam Business CD applies profit-sharing to a fixed term: from a $500 minimum, businesses commit funds and receive an Expected Profit Rate - annual-compounding profit paid at maturity, derived from the Salaam program's segregated Islamic financing portfolio rather than an interest obligation. Contract structure: Varies by product. Shariah oversight disclosed by Stearns Bank: Formal Board. HalalWallet reports what the provider documents; we do not certify products.
How does the Stearns Bank Salaam Business Certificate of Deposit work?
A. (Member FDIC). 66% for 18 months, all from a $500 minimum opening deposit.
What does the Stearns Bank Salaam Business Certificate of Deposit cost?
Expected APY by term (rate sheet effective 8/1/2026, verified 2026-08-05): 3 months 3.96%, 6 months 3.78%, 12 months 3.50%, 18 months 3.01%. $500 minimum opening deposit. 3- and 6-month terms fundable throughout with no early-withdrawal discount; 12- and 18-month terms may carry a discount for early withdrawal. Profit paid at maturity, annual compounding. Expected profit rates, not guarantees.
What are the minimums for the Stearns Bank Salaam Business Certificate of Deposit?
As published by Stearns Bank: minimum opening deposit $500. Confirm current requirements with Stearns Bank before applying.
Where is the Stearns Bank Salaam Business Certificate of Deposit available?
Stearns Bank lists this product as available in all 50 states. Availability can change and may differ by state; verify directly with Stearns Bank.
What are the alternatives to the Stearns Bank Salaam Business Certificate of Deposit?
In the same category we also list Bank of Whittier RF Certificate of Deposit, UIF Deposit Account (HalalWallet Index A), Jafari Credit Union Savings Account. Compare every option side by side on our Halal Bank Accounts hub.
When was this Stearns Bank product information last verified?
HalalWallet last verified the Stearns Bank Salaam Business Certificate of Deposit details against Stearns Bank's published materials on 2026-10-07. Rates, fees, and availability can change after that date.
How to use this comparison: HalalWallet is an independent educational comparison platform - by design, we do not provide financial, legal, or religious advice. We do the research homework so your final checks are quick and personal.
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.
Sources and review process
This page is reviewed against HalalWallet editorial standards and source documentation.
Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-10-07
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