Bank Accounts · Stearns Bank
Stearns Bank Salaam Nonprofit Savings
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 savings account for nonprofit organizations - mosques, Islamic schools, community organizations - from Stearns Salaam Banking, the Islamic banking division of Stearns Bank N.A. (Member FDIC). Nonprofits earn riba-free expected returns from the division's segregated Islamic financing portfolio at preferential tiers published on the 10/1/2026 rate sheet: 1.00% expected APY under $100,000, 2.02% from $100,000, and 3.20% at $500,000 and up - each tier above the equivalent personal and business rates. Stearns also donates up to $1,000 to nonprofits holding the account for 12 months, plus $250 per subsequent 12-month period.
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What is the Stearns Bank Salaam Nonprofit Savings?
A. (Member FDIC).
- Contract structure: Varies by product.
- Expected profit: 1.00%-3.20% expected APY (tiered, nonprofit preferential rates).
- 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
- Nonprofit Savings
- Expected profit / APY
- 1.00%-3.20% expected APY (tiered, nonprofit preferential rates)
- Profit structure
- Profit-sharing - derived from Islamic Banking financing portfolio
- Minimum opening deposit
- $100
- 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
Salaam Nonprofit Savings is where a masjid's reserve fund should sit if the board wants yield without riba. The nonprofit tiers are the best on the Salaam rate sheet - 1.00% expected APY under $100,000 rising to 3.20% at half a million - and Stearns sweetens it with direct donations: up to $1,000 after the first year and $250 per year thereafter. The compliance architecture is the same documented, segregated profit-sharing machinery as the rest of the division, signed off by a three-scholar Sharia Supervisory Board. Boards should understand that returns are expected rather than guaranteed, and that serious yield needs a six-figure balance. Paired with the fee-free Salaam Nonprofit Checking for operations, it gives Muslim institutions a complete, transparent, FDIC-insured banking setup.
Strengths
- 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
Watch-outs
- 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
Is the Stearns Bank Salaam Nonprofit Savings halal?
Salaam Nonprofit Savings lets a mosque or Islamic school earn on idle funds without touching interest: deposits are not invested in interest-bearing instruments, are kept separate from Stearns Bank's interest-bearing deposits, and earn an expected profit derived from the bank's Islamic Banking Division financing portfolio - quoted as an Expected Profit Rate that may change after opening, the language of a profit share rather than a contractual interest promise. Nonprofits get preferential rate tiers over standard business savings on the published Salaam rate sheet, and Stearns adds a direct incentive: it donates up to $1,000 to nonprofits that maintain the account for 12 months, with $250 after each subsequent 12-month period. The compliance documentation is specific: an independent three-scholar Sharia Supervisory Board - Mufti Ibrahim Essa (Darul Uloom Karachi faculty under Mufti Taqi Usmani), Shaykh Taha Abdul-Basser (Harvard-trained), and Mufti Mirza-Zain Baig (AAOIFI-certified) - signed a Certificate of Sharia Compliance covering Salaam savings accounts in June 2024, judged against AAOIFI Sharia Standards and the decisions of Islamic jurisprudence academies, and published as a downloadable PDF. Funds are FDIC-insured through Stearns Bank N.A., with customized options to extend coverage beyond the $250,000 limit.
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 returns from the segregated Salaam financing portfolio, with preferential nonprofit rate tiers
- Stearns donates up to $1,000 to nonprofits holding the account for 12 months, plus $250 per subsequent 12-month period
- $100 minimum opening deposit; funds kept separate from interest-bearing deposits
- Signed SSB Certificate of Sharia Compliance covering Salaam savings accounts (June 2024)
- FDIC-insured, with options to extend coverage beyond $250,000
Cost and terms
Salaam Nonprofit Market Savings expected APY tiers (rate sheet effective 8/1/2026, verified 2026-08-05): 1.00% up to $99,999.99; 2.02% from $100,000; 3.20% at $500,000+. $100 minimum opening deposit per the Salaam Business page (rate sheet lists $0 for Market Savings). Bank donates up to $1,000 after 12 months holding the account, plus $250 per subsequent 12-month period. 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 Nonprofit Savings (this page) | Varies by product | Formal Board | all 50 states | A- |
| UIF Savings Account | Mudarabah | Formal Board | all 50 states | A |
| Jafari Credit Union Savings Account | Qard Hasan | No Public Review | Texas | — |
| Bank of Whittier RF Income Generating Savings & Retirement Savings | RF (Riba Free) profit-sharing savings | Third-Party Certified | all 50 states | — |
Other Stearns Bank products
- Salaam Nonprofit Checking
Bank Accounts · Varies by product
- Savings Account
Bank Accounts · Varies by product
- Salaam Business Certificate of Deposit
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 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 Nonprofit Savings 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 Nonprofit Savings halal?
Salaam Nonprofit Savings lets a mosque or Islamic school earn on idle funds without touching interest: deposits are not invested in interest-bearing instruments, are kept separate from Stearns Bank's interest-bearing deposits, and earn an expected profit derived from the bank's Islamic Banking Division financing portfolio - quoted as an Expected Profit Rate that may change after opening, the language of a profit… 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 Nonprofit Savings work?
A. (Member FDIC). 20% at $500,000 and up - each tier above the equivalent personal and business rates.
What does the Stearns Bank Salaam Nonprofit Savings cost?
Salaam Nonprofit Market Savings expected APY tiers (rate sheet effective 8/1/2026, verified 2026-08-05): 1.00% up to $99,999.99; 2.02% from $100,000; 3.20% at $500,000+. $100 minimum opening deposit per the Salaam Business page (rate sheet lists $0 for Market Savings). Bank donates up to $1,000 after 12 months holding the account, plus $250 per subsequent 12-month period. Expected profit rates, not guarantees.
What are the minimums for the Stearns Bank Salaam Nonprofit Savings?
As published by Stearns Bank: minimum opening deposit $100. Confirm current requirements with Stearns Bank before applying.
Where is the Stearns Bank Salaam Nonprofit Savings 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 Nonprofit Savings?
In the same category we also list UIF Savings Account (HalalWallet Index A), Jafari Credit Union Savings Account, Bank of Whittier RF Income Generating Savings & Retirement Savings. 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 Nonprofit Savings 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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