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How does Islamic banking work in practice? - Saving Accounts |
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UK -
Islamic Current Accounts
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Source: Shariabanking.net
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Wednesday, 09 August 2006 |
Savings accounts Savings
accounts usually run on a principle known as Mudaraba, where a
profit-sharing agreement is struck between you and the bank....
A combination of no-notice, term
deposits and treasury accounts are usually available. For no notice
accounts there are no limits to the amount you can withdraw in any
month (as long as you have sufficient savings in your account), and no
withdrawal penalties attached. For term deposits there is usually a
minimum deposit.
Rather
than earning interest on your deposits, you will rely on the bank to
use your funds to trade in Shariah-compliant investments and then share
the profits with you.
Returns
can be just as attractive as those on conventional accounts, and often
better for term deposits or treasury accounts. Fairness is very much a
part of Islamic finance so products should be as competitive as
possible.
Any
management or administration charges levied for both current and
savings accounts should be transparent from the start. |
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Last Updated ( Sunday, 07 January 2007 )
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