Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • loveprada
    • By loveprada 12th Oct 17, 7:29 PM
    • 48Posts
    • 4Thanks
    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
    • 4,271 Posts
    • 5,407 Thanks
    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
    • 3,444 Posts
    • 3,234 Thanks
    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
    • 4,271 Posts
    • 5,407 Thanks
    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
    • 103 Posts
    • 91 Thanks
    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
    • 8,202 Posts
    • 9,097 Thanks
    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
    • 314 Posts
    • 383 Thanks
    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
    • 4,255 Posts
    • 6,702 Thanks
    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
    • 8,318 Posts
    • 10,656 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?
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

334Posts Today

3,961Users online

Martin's Twitter
  • Ah these care free days of watching #ENG score 5 goals in the first half of a World Cup match. It reminds me of... Never.

  • Then it should be. It's not some accident. It's deliberate grappling https://t.co/UxVTuUSNio

  • Penalty yes but time someone was sent off for these wrestling moves #WorldCup

  • Follow Martin