Savings account any good?

[pwuser150252978437]

Aoa. I am new to saving bank accounts or fixed deposits. Ive been thinking to save some cash for no specific goal but just for safety. I intend to deposit 200k initially and 50k monthly. Would a savings account benefit be as this will be only for my savings i have other accounts for daily expense.
NOTE: Please dont post about "sood" is haraam.

[binyameen488]

Sood haraam hai. Find other sources of income such as investing in property. Safety Allah k hath me hai.

[xenerking]

if we ignore the SOOOOOD...

how much bank is paying u on PLS? 4% or 5%?

2.5% zakat shall be deducted on it, so u will end up with 1.5% or 2.5%

NOTE: now, pleeeease don't say that, you are not going to pay ZAKAT as well..

[pistonhead]

My advice - buy and keep dollars... Pak Rupee is undergoing devaluation, its better to keep foreign exchange.

[adnan.shaukat]

Do not go for PLS Savings Account, no benefit,
in Bank Accounts, only option will be National Savings (Bahbood savings certf.) if you can buy certificates on your parent Name if they are 60+ of age.
Instead invest in Mutual fund (NIT or Meezan or any other)
Buying currency or Gold or Prize bonds can be better option as well.

[qwertz]

If monthly income is not a problem get National Defense saving certificates. Their 10 yearly yield gives you good money.

[Samikhan11]

Saving is haram. You will create more problems by doing that.
The best thing i would advise you to do is, open a current bank account in two other banks, dont opt for debit card. Deposit your money in those accounts. Dont use those accounts. Your purpose would be fullfilled.

[pwuser150252978437]

Is it possible to invest monthly in mutual funds..meaning the prinicipal amount + profit from mutual funds + own investment each month. And will the money at the end of the month be considered in the next principal amount?

[biloo]

What about Islamic banking?

[adnan.shaukat]

https://www.nerdwallet.com/blog/investing/mutual-funds-work/ Please go through this link or use Google to get an exact idea of how mutual fund works. The basic principle is that money you invest in a mutual fund, you have been given ABC number of units according to your investment amount and NAV unit price. you can add more investment or withdraw anytime. Profit/Loss depends on how that particular fund performs in a given period

[Sarkaar]

Invest in any Islamic mutual fund and you should be good, you can get tax benefit as well if you are salaried class. Money is still cashable within 3-5 days of redemption, however on investment some amount is deducted as a fees and capital gain tax is applied only on Gain, so its minimal.

Every major banks has mutual funds Meezan, HBL, MCB, UBL etc

[khurem]

Saving account is useless for you as you are already having another account for meeting expenses. Either keep investing the monthly amount in a term deposit or a much better option is to invest that in a good mutual fund. It would be your choice how much risk you want to take. Money market fund is risk free and you will earn good profit, Income or mixed fund may give you better returns but at a higher risk, stock fund may give you the best returns but at a greater risk.

Best benefit that you will get out of investing in mutual funds is reduction in your income tax liability.

[khurem]

If you submit Zakar declaration form, then there is no deduction of 2.5% on PLS.

And it is best to submit Zakat declaration form, as the huge money collected by Govt is hardly given to poor. It is much better to pay Zakat yourself to the person you know is eligible for Zakat.

[Nabs]

Liquid savings formula in Pakistan: 30% USD, 30% EUR, 30% Gold, 10% PKR.
Most banks pay 3-4% on savings account, which is nothing. In last 10 years Rupee went from 60 to 117 against dollar. Almost double. You need 10% per annum savings account just to match rupee depreciation.
The maximum you get is 9.3% from National Savings, which is only for senior citizens and widows.

[pwuser150252978437]

So the best option i have for now is mutual funds... i already have an account in UBL so i will have a talk with the banker there.
On a side note, most people dont realize the whole concept of banking is based on "sood". Not to argue, but if you keep any money in a bank, you are supporting a "sood" based industry or economy.

[binyameen488]

You do sood cause of two reasons: Greed or Fear.

By putting money in current accounts no you're not supporting sood it's just an excuse and a made up reason. In Quran Allah has called sood war against Allah.

Rest is upto you. Its your life.

[xenerking]

nd it is best to submit Zakat declaration form, as the huge money collected by Govt is hardly given to poor. It is much better to pay Zakat yourself to the person you know is eligible for Zakat.

does not matter....we are trying to ascertain the the benefit on PLS....if you intend to pay zakat....still 2.5% will
be deducted from PLS profit..

and when you are managing zakat payment yourself, its kinda tricky to keep records that how much was profit from PLS, blah blah....hope you got my point

[xenerking]

up fronts bankers tell you that they make multiple investments etc not involving SOOD, but yes reality is that biggest business of banking industry in Pakistan is LOAN earning interest on it.....

and you cannot keep large sums of amount safely at your home...so best bet is current account....you are keeping your saving of your children in a bank for safetly yet you are not letting them use it for sood business and also you are not taking any part of sood from bank...

[mohsan87]

Beside PLS accounts. Consider Mutual Funds of Capital Preservation Plans. Where you have to keep your amount invested for specific time.
You will get reasonable profit with security of capital amount also.

So check AlMeezan Capital Preservation Plan 4. Subscription is opened for limited time

[Samikhan11]

Mr Daniyal if you want to ruin your life or create problems for yourself you are more than welcome to put your money in savings account. Nobody is stopping you. You should try it.