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Recommended Islamic Bank Current & Savings Account

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Comments

  • TheTracker
    TheTracker Posts: 1,223 Forumite
    1,000 Posts Combo Breaker
    Chino wrote: »
    If a product is genuinely disbursing a share of its profits, it's an investment product and not a savings product and so shouldn't appear in any list of savings accounts.

    How do you think a bank funds the interest it gives to savers?
  • eskbanker
    eskbanker Posts: 40,904 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    TheTracker wrote: »
    How do you think a bank funds the interest it gives to savers?
    Not from profits, interest will be a cost of sale constituent much further up the P&L!
  • Herbalus
    Herbalus Posts: 2,634 Forumite
    Tenth Anniversary 1,000 Posts Name Dropper
    Whether it is actually a share of the profits, or just they've given it that name because sharia law doesn't allow interest, I don't know. It looks just like semantics to me, as a return of profits equal to 2% of the amount deposited appears suspiciously the same as 2% interest. But I'm not an expert.
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