ISLAMIC SAVING ACCOUNT

ISLAMIC SAVING ACCOUNT

HALAL SAVING ACCOUNTS ISLAMIC SAVING ACCOUNT HALAL SAVINGS FOR CHILDREN HALAL DIVIDEND

An Islamic saving account is defined as a form of investment deposited account with an Islamic bank or Muslim insurance by a Muslim investor who invests his money according to the principles of Islamic finance.

Islamic saving accounts are intended to allow a Muslim saver to be able to invest his savings in a context respecting the rules of Islamic Sharia that applies the principle that the money saved and invested is not used to finance commercial activities that would be against Islamic ethical values.

Halal saving accounts are now offered by many Islamic banks and insurance companies that which make them compatible with Muslim ethics, that differ from conventional ethical investments by prohibiting the use of interest as a remuneration option.

Islamic savings allow Muslim savers to invest their savings with financial organizations that respect Islamic Sharia law as deposits adapt to Islamic ethical finance and Islamic savings can also take several forms including Islamic capitalization life insurance which is a Muslim ethical investment option, but also:

  • Halal housing savings.
  • Halal retirement savings.
  • Halal wedding savings.
  • Halal studies savings for children.

Islamic saving accounts as so far safer than conventional money placements given that it applies following principles:

  • No interests but participation in profit (Halal dividends).
  • No speculative values such as derivatives or stock options.
  • Investment only in lawful activities according to Islam.