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Lloyds TSB brings Islamic banking to students |
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UK -
Islamic Current Accounts
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Source: Shariabanking.net
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Wednesday, 23 August 2006 |
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 The first UK student current account that complies with Muslim law has been unveiled by Lloyds TSB.
Financial
products that comply with Islamic or Sharia law, and are therefore
suitable for Muslims, have been offered by major banks in the UK for
several years.
However, Lloyds TSB -
who along with HSBC have led the way in many areas of Muslim finance -
have now become the first to offer a Sharia-compliant student account.
"This student account is the first to have
been designed with Muslims in mind," said Paul Sherrin, head of Islamic
financial services at Lloyds TSB.
"Britain's two million
strong Muslim community is as young as it is fast growing, with more
than half under the age of 25 - and of course many of these are
studying.
"Until today, however, young Muslim students have
had no choice but to go against their beliefs by opening traditional
bank accounts. By providing a real alternative that meets their
financial and religious needs, we've made it possible for them to enjoy
campus life without compromising their faith."
Islamic, or
Sharia, law forbids the charging or receiving of interest (Riba in
Arabic), making conventional mortgages, overdrafts, and many investment
funds off limits.
Shares and dividends are acceptable, but speculation is forbidden.
Additionally
the only companies that are Halal (permissible) to own shares in cannot
have income from alcohol, pork-related products, pornography and
nudity, conventional financial services, gambling, tobacco, armaments
and human or animal genetic experimentation.
The new Lloyds
TSB student account does not pay or charge interest and customers'
deposits are kept separately to all other funds held by the bank.
To
make sure its student account is fully compliant with Islamic law,
Lloyds TSB has consulted with a board of Islamic scholars, who have
advised on all aspects of Islamic finance law.
The Lloyds TSB Islamic student account offers:
Up to £1,500 interest-free overdraft for
students in year one, two and three. For students on longer courses, an
interest-free overdraft of up to £2,000 is available during years four,
five and six.
Free internet banking
Commission-free foreign currency and travellers cheques
Lloyds TSB debit card. Maximum daily ATM withdrawal of £200
A free 512Mb iPod shuffle, and one year's free Youth Hostel Association (YHA) membership worth £9.95 |
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Last Updated ( Sunday, 07 January 2007 )
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