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  • FIRST POST
    • loveprada
    • By loveprada 12th Oct 17, 7:29 PM
    • 48Posts
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    loveprada
    Sharia Bank Accounts in UK High Street Banks
    • #1
    • 12th Oct 17, 7:29 PM
    Sharia Bank Accounts in UK High Street Banks 12th Oct 17 at 7:29 PM
    Please can somebody explain to me how High Street banks such as Lloyds benefit from operating Sharia compliant bank accounts?
    My concern is this: if I have a regular account with say Lloyds who run a sharia account, are they making a profit from these accounts or are we somehow subsidising them?
Page 1
    • ColdIron
    • By ColdIron 12th Oct 17, 7:42 PM
    • 3,473 Posts
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    ColdIron
    • #2
    • 12th Oct 17, 7:42 PM
    • #2
    • 12th Oct 17, 7:42 PM
    The Lloyds Islamic account is no longer available to new customers
    • Eco Miser
    • By Eco Miser 12th Oct 17, 7:47 PM
    • 3,091 Posts
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    Eco Miser
    • #3
    • 12th Oct 17, 7:47 PM
    • #3
    • 12th Oct 17, 7:47 PM
    They benefit by getting Muslim customers.
    Since the accounts pay profit rather than interest, why would Lloyds be cross-subsidising them?
    Eco Miser
    Saving money for well over half a century
    • ColdIron
    • By ColdIron 12th Oct 17, 8:05 PM
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    ColdIron
    • #4
    • 12th Oct 17, 8:05 PM
    • #4
    • 12th Oct 17, 8:05 PM
    There are sharia accounts and there are sharia accounts. The current accounts provided by high street banks like Lloyds have no interest (credit or debit), overdraft facilities or charges. They also say your money will not be used for interest paying activities. I'd say on balance they were subsidising us and not the other way around and they benefit by having more customers they can cross sell insurance products to. Sharia savings accounts are usually run by Islamic banks and offer projected profits as a reward. Profit is just fine in Islam, it's not money for money. These will be run in accordance with their other business practises
    • greatkingrat
    • By greatkingrat 12th Oct 17, 9:31 PM
    • 56 Posts
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    greatkingrat
    • #5
    • 12th Oct 17, 9:31 PM
    • #5
    • 12th Oct 17, 9:31 PM
    And by an amazing coincidence the profit they make is always about the same as the interest rate on similar accounts.
    • Owain Moneysaver
    • By Owain Moneysaver 12th Oct 17, 9:42 PM
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    Owain Moneysaver
    • #6
    • 12th Oct 17, 9:42 PM
    • #6
    • 12th Oct 17, 9:42 PM
    And by an amazing coincidence the profit they make is always about the same as the interest rate on similar accounts.
    Originally posted by greatkingrat
    It's not a coincidence, it's simple accountancy and economics.

    With ordinary accounts the bank pays the customer interest, and what's left over is profit for the shareholders.

    With sharia accounts the bank pays the shareholders what it thinks they deserve, and what's left over is profit for the account-holder.
    A kind word lasts a minute, a skelped erse is sair for a day.
    • longleggedhair
    • By longleggedhair 12th Oct 17, 11:26 PM
    • 248 Posts
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    longleggedhair
    • #7
    • 12th Oct 17, 11:26 PM
    • #7
    • 12th Oct 17, 11:26 PM
    When in Rome, do as the Romans.....
    • Malthusian
    • By Malthusian 13th Oct 17, 9:44 AM
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    Malthusian
    • #8
    • 13th Oct 17, 9:44 AM
    • #8
    • 13th Oct 17, 9:44 AM
    When in Rome, do as the Romans.....
    Originally posted by longleggedhair
    Eat dormice and vomit on the floor?
    • PeacefulWaters
    • By PeacefulWaters 13th Oct 17, 11:23 AM
    • 7,002 Posts
    • 8,608 Thanks
    PeacefulWaters
    • #9
    • 13th Oct 17, 11:23 AM
    • #9
    • 13th Oct 17, 11:23 AM
    Please can somebody explain to me how High Street banks such as Lloyds benefit from operating Sharia compliant bank accounts?
    My concern is this: if I have a regular account with say Lloyds who run a sharia account, are they making a profit from these accounts or are we somehow subsidising them?
    Originally posted by loveprada
    I'm not a namby pamby politically correct kinda guy.

    But there seems to be more than a little underlying racism in your posting.

    I believe a typical lloyds account pays interest. A Sharia account with Lloyds (albeit no longer available) doesn't.

    Who's cross subsidising who?
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