Making money without earning interest

sexysam

As a devout Muslim, the giving and taking of interest is not permissable for me under any circumstances.

Now I can save an average of £1000 per month after paying all the expenses. My question is what I can do to make some profit but not interest on it.

At the moment it goes into a current account and stays there. I have over £15000 in it.

I am not brave enough to take risk with it, therefore if it is a small amount of profit is better than interest on it.

Any ideas/suggestions would be welcome please.

yelf

Some banks have Sharia compliant accounts, which work like normal interest - but actually arent. so you can "earn interest" so to speak, whilst being fully compliant with muslin beliefs.

http://money.uk.msn.com/investing/articles/nicklouth/article.aspx?cp-documentid=4753179

Hippychick

http://www.islamic-bank.com/islamicbanklive/TermDeposit/1/Home/1/Home.jsp

No experience of this type of banking at all but a shariah account may be of use?

freezspirit

I'm guessing you have a current account like this: http://www.hsbc.co.uk/1/2/personal/travel-international/hsbc-amanah;jsessionid=0000H7Tb81ro3Eq5nSb5sJCuYWv:12ntf0lqs

Now I'm guessing on how you define profit and interest also if your belief will allow you to loan money to other people and get commission back - would that be classed as profit or interest.

I read a thread about a month ago (so sorry can't find it now) about a website where you can advertise to loan people money stating the loan amount, time frame and how much you want back.

Only over way I can think is to invest but then you could make a profit or loss everything.

Reaper

freezspirit wrote: »

I read a thread about a month ago (so sorry can't find it now) about a website where you can advertise to loan people money stating the loan amount, time frame and how much you want back.

Zopa is the one you are thinking of, but I doubt it would be acceptable.

The Islamic Bank of Britain offers a suitable fixed term savings account equivilent to earning an interest rate of up to 3.5%

mr_fishbulb

Sharia banking outlaws usury (paying interest on loans). Also any investments must be in areas which are not Haraam.

As others have said, there already exist Sharia compliant bank accounts but there is also a lot of development in Shariah investment funds which you may want to look at, given the amount you are saving.

slinga

mr_fishbulb wrote: »

Sharia banking outlaws usury (paying interest on loans). Also any investments must be in areas which are not Haraam.

As others have said, there already exist Sharia compliant bank accounts but there is also a lot of development in Shariah investment funds which you may want to look at, given the amount you are saving.

Was just about to post the same comment.

Many of these funds are open to everybody.

jon3001

Maybe 'Zero Dividend Preference Shares' could play a role?

robpw2

the username doesnt exactly fit with the devout muslim bit .. ? lol

MRSTITTLEMOUSE

sexysam wrote: »

As a devout Muslim, the giving and taking of interest is not permissable for me under any circumstances.

Now I can save an average of £1000 per month after paying all the expenses. My question is what I can do to make some profit but not interest on it.

At the moment it goes into a current account and stays there. I have over £15000 in it.

I am not brave enough to take risk with it, therefore if it is a small amount of profit is better than interest on it.

Any ideas/suggestions would be welcome please.

Surely any profit (or whatever else you like to call it) would be some form of interest,so realy what you are looking for is some way to "bend the rules".
I would say morally,that's not very good is it,especially since you say you are a devout muslim.

jon3001

MRSTITTLEMOUSE wrote: »

Surely any profit (or whatever else you like to call it) would be some form of interest.

So when you buy a loaf of bread with cash at the shop - what APR is the shop charging you?