Lloyds bank offers Free Shariiah Bank accounts!

Healthnut.2012

I saw this on face book and then went on the Lloyds web site and there it is, no credit or debit interest, no minimum balance. Not going into the whole religious thing, apparently its open to anyone as the UK says, so worth a switch, though I don't know how long the bank can support it. Not allowed to post links but look up Islamic bank accounts and it takes you to there. I need a new account, think I will give it a try.

:j

reclusive46

Healthnut.2012 wrote: »

I saw this on face book and then went on the Lloyds web site and there it is, no credit or debit interest, no minimum balance. Not going into the whole religious thing, apparently its open to anyone as the UK says, so worth a switch, though I don't know how long the bank can support it. Not allowed to post links but look up Islamic bank accounts and it takes you to there. I need a new account, think I will give it a try.

:j

No planned overdrafts are offered on the account.

mgdavid

There was a thread on this subject a few weeks ago (unless it was another bank),

worriedindebt

These are shariah compliant accounts but can be used by anyone if I'm not mistaken.. Think there have been several banks tried these over the years. Just have no interest or borrowing facilities.

agrinnall

That could be a good solution to those people who post complaining that they thought their account wouldn't go overdrawn then being hit with charges - assuming no borrowing means what it says, although of course that means any payment attempted without available funds will be rejected.

efbe

agrinnall wrote: »

That could be a good solution to those people who post complaining that they thought their account wouldn't go overdrawn then being hit with charges - assuming no borrowing means what it says, although of course that means any payment attempted without available funds will be rejected.

exactly.

it's very hard to get an account like this. so it's not a bad deal!

Herbalus

The catch with Lloyds' Sharia-compliant current account - regarding those who feel it will avoid overdraft charges - is found in their Banking Charges leaflet:

Our Islamic Account is Shariah compliant and Planned Overdrafts are not available. Where you do not have enough available money to make a payment, we will not usually agree to provide an Unplanned Overdraft and the Returned Item Fee will apply.

Page 11 of the same document explains that Lloyds will charge you £10 for every attempted transaction over £10 that would have otherwise have caused you to end up in an overdraft.

So while Lloyds might not (read "don't usually" i.e. probably not) let you go into an unexpected overdraft, you will be charged £10 for trying.

There are cheaper accounts if going overdrawn "accidentally" is something that happens occasionally.

ManAtHome

I've had a Nationwide Flex with the overdraft facility turned off for a few years (mainly used for internetting) - only had one payment refused a couple of years ago, my fault, no charges made.

eskbanker

ManAtHome wrote: »

my fault

Now there's a phrase that's not often seen on here!

Aquamania

Healthnut.2012 wrote: »

I saw this on face book and then went on the Lloyds web site and there it is, no credit or debit interest, no minimum balance. Not going into the whole religious thing, apparently its open to anyone as the UK says, so worth a switch, though I don't know how long the bank can support it. Not allowed to post links but look up Islamic bank accounts and it takes you to there. I need a new account, think I will give it a try.

:j

No credit interest? Pah! TSB pay 5% on balances up to £2k

No debit interest? That's because they won't lend you anything (at least by prior arrangement)
And I suspect if you try to spend money you don't have without such a prior agreement in place, then they will be more likely to embarrass you by refusing such a loan.
If they can stop it then as another poster says, they will charge you a fee.

If you need a new account, I suggest you look around. There are a lot better alternatives out there (unless you particularly wish to follow Islam rules)

You say you don't know how long the bank can support this type of account?
I would think indefinitely. Seems a right little money spinner. They keep the interest on money you deposit and won't lend you anything.
That's the way bank current accounts of old used to operate (except they didn't use to charge a tenner every time you attempted to spend money you don't have) until competition started to spark things up a bit.

jayjay21

Aquamania wrote: »

No credit interest? Pah! TSB pay 5% on balances up to £2k

No debit interest? That's because they won't lend you anything (at least by prior arrangement)
And I suspect if you try to spend money you don't have without such a prior agreement in place, then they will be more likely to embarrass you by refusing such a loan.

And that is the whole point of the account, there would not be any prior arrangement.

I somehow doubt such an organisation like Lloyds would spend the money developing an account to embarrass people.