Which saving account is best in islamic banks

[mohtashimiqbal]

Many scholors & economists don't agree with this equivalence of interest and sood. Interest is the charge for the capital you provided to others. The main thing is that it is the agreed amount, which is justified through the equilibirium market forces. If someone charges over and above that market rate of interest, then that is exploitation.

Interest is a fee or an incentive due to which you would take the risk of providing your money to someone. If there is no incentive, would you take a huge risk of giving 10 lacs to someone for a year, let's say? That person may default and you are better off not giving any loan to anyone and keep saving it in your lockers.

Riba or Sood, by definition is the money earned over a loan through exploitation. It is the excess money you charge that is not justified. The person who gave the loan charges is due to the weakness of the person who has obtained the loan. Hence the person who owe the loan money is being exploitated.

Islam has prohibited riba/sood. Interest rates are based on the economy's inflation rates, the risk of default & loss of liquidity, and is agreed by both parties i.e. the buyers and suppliers of capital. If a person charges a rate which is higher than the justified interest rate, then that is exploitation, and the excess would constitute as riba.

Obviously, only God knows the truth. The safest way is to avoid profit of any form (whether islamic or conventional banking) on money and invest the money in a commodity or property. Both islamic bank and conventional bank will give you profit over your money invested, the difference is only the process with which they will give you that return (and their nomenclature). But it's also not that simple to just consider interest as 'riba/sood'.

good thought.
although , just a thought from my point of view.

Go to the source of money , THE FED Reserves. and the world bank.
They are exploiting the whole world by providing them loan that doesn't even exist.

since Richard nixon , Dollar is not Gold backed.
if you disagree , please tell me when was the last time FED. reserves had an audit .

and about the religious scholars.

NO MATTER HOW HIGH OF A SCHOLAR STATES INTEREST as legal.
it wud'nt become halal.

we as muslims are supposed to do what Allah has ordered.
Not what a " NEW AGE" "interpretation" of scholars , has to offer.

INTEREST IS HARAM , AND WOULD STAY HARAM FOREVER.

[autophile]

Be careful about chosing a bank Sharia-compliant or conventional. Chose the one where your money is safe. Account holders of Islamic Investment Bank are running from pillar to post to get their life savings back after the bank collapsed.

State owned bank service may be dirt poor, but your money is safe.

[khurem]

good thought.
although , just a thought from my point of view.

Go to the source of money , THE FED Reserves. and the world bank.
They are exploiting the whole world by providing them loan that doesn't even exist.

since Richard nixon , Dollar is not Gold backed.
if you disagree , please tell me when was the last time FED. reserves had an audit .

and about the religious scholars.

NO MATTER HOW HIGH OF A SCHOLAR STATES INTEREST as legal.
it wud'nt become halal.

we as muslims are supposed to do what Allah has ordered.
Not what a " NEW AGE" "interpretation" of scholars , has to offer.

INTEREST IS HARAM , AND WOULD STAY HARAM FOREVER.

Dude you are basing your argument on the assumption that interest = riba or sood.

Islam never said interest is haraam. Quran said riba is haraam. Literal meaning of riba is 'usury' or 'excess'. Usury is different from interest, it is generally defined as the exorbitant interest that is charged over money. Economists know what is interest and it is in no way 'usuary' or 'excess'.

Historically usury was an arbitrary figure that was charged by the lenders over the loans. It was mainly exploitation depending on how weak the borrower was. But Interest rates are calculated, and can be broken down into its components (such as inflation charge, liquidity charge, default risk premium etc), and none of the component is exploitation. While usury differs from transaction to transaction depending on the luck of the lender that how much he can exploit borrower's condition; interest rates will remain same for all borrowers, and hence they are agreed by both the lenders and the borrowers (such as in car leasing).

[khurem]

And by the way there is gross misunderstanding of interest. Most people think that eliminate interest once in for all, but that is not possible. Why? Because if interest is eliminated, or let's say reduced to near 0%, what will happen?

Everyone will want to borrow money to invest in some project or other, as there is nothing to lose, right? there is no cost. So the whole economy, all individuals and corporations would want to borrow money. However people with money won't give it, as why should they give it to others? It's not charity. Why shouldn't they themselves invest that money? So, demand will be huge, and supply next to nothing. So income will remain with very few individuals, there is no redistribution of income, no economic activity. Rich will remain rich and poor can't do anythihng.

Unless of course the demand-supply equilibirium is maintained, the interest rates rise to the point where the lenders are willing to provide their money to borrowers, who are willing to obtain the money at that rate. That is the equilibirium rate of interest.

[v8]

Many scholors & economists don't agree with this equivalence of interest and sood. Interest is the charge for the capital you provided to others. The main thing is that it is the agreed amount, which is justified through the equilibirium market forces. If someone charges over and above that market rate of interest, then that is exploitation.

Interest is a fee or an incentive due to which you would take the risk of providing your money to someone. If there is no incentive, would you take a huge risk of giving 10 lacs to someone for a year, let's say? That person may default and you are better off not giving any loan to anyone and keep saving it in your lockers.

Riba or Sood, by definition is the money earned over a loan through exploitation. It is the excess money you charge that is not justified. The person who gave the loan charges is due to the weakness of the person who has obtained the loan. Hence the person who owe the loan money is being exploitated.

Islam has prohibited riba/sood. Interest rates are based on the economy's inflation rates, the risk of default & loss of liquidity, and is agreed by both parties i.e. the buyers and suppliers of capital. If a person charges a rate which is higher than the justified interest rate, then that is exploitation, and the excess would constitute as riba.

Obviously, only God knows the truth. The safest way is to avoid profit of any form (whether islamic or conventional banking) on money and invest the money in a commodity or property. Both islamic bank and conventional bank will give you profit over your money invested, the difference is only the process with which they will give you that return (and their nomenclature). But it's also not that simple to just consider interest as 'riba/sood'.

Your logics and explanations are good but why to take risk.
Second, there is no space of logics and arguments in islam to defend against the preaching of religion. Our logics and arguments will not change anything that is said to be haram.
Better safe than sorry!

[Rawfay]

^But isn't it supposed to be Quran on top, then hadith and then your Aqal/logic? Ashraful makhluqat banaya hai Allah ne.

[mohtashimiqbal]

Dude you are basing your argument on the assumption that interest = riba or sood.

Islam never said interest is haraam. Quran said riba is haraam. Literal meaning of riba is 'usury' or 'excess'. Usury is different from interest, it is generally defined as the exorbitant interest that is charged over money. Economists know what is interest and it is in no way 'usuary' or 'excess'.

Usuary is different from interest..? only because according to you and the Economists it is NOT exorbitant..?
so its the " economists now who are deciding what is halal and what is haram , not Allah SWT , cool.

Historically usury was an arbitrary figure that was charged by the lenders over the loans. It was mainly exploitation depending on how weak the borrower was. But Interest rates are calculated, and can be broken down into its components (such as inflation charge, liquidity charge, default risk premium etc), and none of the component is exploitation.

Historacally , a small number of JEWS were sucking blood of people ,
Now they have made it a system to suck blood from all over the world..

They suck the country's blood through IMF , WORLDBANK , and then the country sucks the blood of its citizens.

And Please , if you are an Economist , please get in detail , why inflation comes , because there is NO real MONEY ...no gold backed currency ..

devalue all you want , and suck your blood all they want.

dollar is getting devalued , and inflation is rising because it isnt gold backed any more

since 1913 , dollar has depriciated 96% . yes a 96% , taking inflation to new peaks .

While usury differs from transaction to transaction depending on the luck of the lender that how much he can exploit borrower's condition; interest rates will remain same for all borrowers, and hence they are agreed by both the lenders and the borrowers (such as in car leasing).
yes and in case the poor chap delays some payment , they put all the ABCDXYZ charges over him ,

car leasing thing is Islamically legal ,

same rule as installment plan.
but payment above what has been agreed, In any case. is HARAM.
and none of the banks follow it.

plus , if installment deals are done , they are only islamic , if the borrower doesnt recieve hand cash , but the commodity.

most islamic banks do it this way.

but the overpayment CHARITY bluff is NON-SENSE.

[mohtashimiqbal]

^But isn't it supposed to be Quran on top, then hadith and then your Aqal/logic? Ashraful makhluqat banaya hai Allah ne.

Your logics and explanations are good but why to take risk.
Second, there is no space of logics and arguments in islam to defend against the preaching of religion. Our logics and arguments will not change anything that is said to be haram.
Better safe than sorry!

felt very nice to hear these words from you brothers .

this is the way it should be , we cannot propose any LOGIC against Quran. its above our logic , and above our intelligence , and we blindly submit ourselves to it , and put our trust on Allah.

[mohtashimiqbal]

And by the way there is gross misunderstanding of interest. Most people think that eliminate interest once in for all, but that is not possible. Why? Because if interest is eliminated, or let's say reduced to near 0%, what will happen?

Everyone will want to borrow money to invest in some project or other, as there is nothing to lose, right? there is no cost. So the whole economy, all individuals and corporations would want to borrow money. However people with money won't give it, as why should they give it to others? It's not charity. Why shouldn't they themselves invest that money? So, demand will be huge, and supply next to nothing. So income will remain with very few individuals, there is no redistribution of income, no economic activity. Rich will remain rich and poor can't do anythihng.

Unless of course the demand-supply equilibirium is maintained, the interest rates rise to the point where the lenders are willing to provide their money to borrowers, who are willing to obtain the money at that rate. That is the equilibirium rate of interest.

They will trade my brother
become partners , hold business ventures together , trade is legal , interest is not.

[internal_auditor]

yes, its interest income and interest income is haram!

avoid it!

Can economy of world or of any country run without banking system ?

[mohtashimiqbal]

Can economy of world or of any country run without banking system ?

very excellent and thought provoking question.
i must say.

answer is yes , it can be run , but that is NOT possible in the paper currency environment.

just a hint for you....now pay attention.

FEDERAL RESERVES.
takes charge of the dollar in 1913.

in 2008 , the dollar worth only 4 cents since 1913.
96% depreciation.
in a tenure of 95 years.

average depreciation.
1% per year.

NOw if the dollar is depreciating @ 1% per year.
and in 2008 it was 96%

how much time do you think it remains for it to collapse since 2008

4 years.

2008+4

=2012

(notice all the hype)

( i happen to be a professional forex trader , and i know what i m talking about keeping in view all the economic indicators )

MOD EDIT: Religious content removed.

ThIS WHOLE SYSTEM IS ON THE VERGE OF COLLAPSE NOW

[v8]

Can economy of world or of any country run without banking system ?

No, but it does not means that interest income has become halal!

Same like, if whole world starts drinking alchol; this will not make it halal! Will it ?

[mohtashimiqbal]

No, but it does not means that interest income has become halal!

Same like, if whole world starts drinking alchol; this will not make it halal! Will it ?

+1 exactly

EVERYTHING , that Allah SWT has made haram , these people have legalied it , may it be the blood sucking financial system , or our shameless media , or alcohol consumption , every thing is legalized , there's nothing left now.
it doesnt mean that it is not haram.

insan ki soch badal sakti hai , Allah ka hukum aur Allah ka deen nahi badal sakta.

[amawan191]

I moved from UBL to Dubai Islamic Bank. Happy & satisfied.................Alhamdullilah

[bluespark]

If you have excess money why not to put something in business, this way you will make way for other peoples living. becoming such a figure is highly required.Unfortunately we Pakistanis trust banks more than ourselves. If you put small business it will keep your money safe besides yielding a second source of income.

and getting any sort of profit is Haram in my opinion, no matter how you twist the words or apply logic. i always keep whatever I have in current account!

[amawan191]

@blue spark!
i agree with you, wating for some good idea and reliable person.......any way thank u so much.

[suzukialtomehran]

almost all are sugar coated tablets

LOL i agree with you!

[BackToCivicFaiez]

Many scholors & economists don't agree with this equivalence of interest and sood. Interest is the charge for the capital you provided to others. The main thing is that it is the agreed amount, which is justified through the equilibirium market forces. If someone charges over and above that market rate of interest, then that is exploitation.

Interest is a fee or an incentive due to which you would take the risk of providing your money to someone. If there is no incentive, would you take a huge risk of giving 10 lacs to someone for a year, let's say? That person may default and you are better off not giving any loan to anyone and keep saving it in your lockers.

Riba or Sood, by definition is the money earned over a loan through exploitation. It is the excess money you charge that is not justified. The person who gave the loan charges is due to the weakness of the person who has obtained the loan. Hence the person who owe the loan money is being exploitated.

Islam has prohibited riba/sood. Interest rates are based on the economy's inflation rates, the risk of default & loss of liquidity, and is agreed by both parties i.e. the buyers and suppliers of capital. If a person charges a rate which is higher than the justified interest rate, then that is exploitation, and the excess would constitute as riba.

Obviously, only God knows the truth. The safest way is to avoid profit of any form (whether islamic or conventional banking) on money and invest the money in a commodity or property. Both islamic bank and conventional bank will give you profit over your money invested, the difference is only the process with which they will give you that return (and their nomenclature). But it's also not that simple to just consider interest as 'riba/sood'.

MohtashimIqbal is right about everything...

The thing is that interest is haram cuz it is bad.
Ask any economist if he were given choices between 2 types of economies, one based on interest based banking system and the other has some completely different system that involves no interest. He will definitely choose the non-interest one.

This is because of the well known relationship between employment and inflation which depends on interest rate. low interest rate gives low unemployment but high inflation. where as high rates give high unemployment and low inflation.

So if there were zero percent interest rate, there wud be no inflation(cuz no money is injected) and no unemployment ( cuz of extremely cheap capital/finance )

The thing to understand is that interest is used to inject money into the economy. Who gets it? thats for the banks to decide. And normally it goes to those who already have alot of money. Who gets left behind? avg guys like the labourers who dont get a piece of the new cake just injected.
What happens? lower class real incomes may in rare circumstances fall or atleast stay same or rise very slowly, where as the rich guys income always rises exponentially.

So I believe to solve this problem , Islam forbids interest and there are no exceptions.
You must also realize that the interest based banking system is used to make sure the rich/influential people remain in power and full control. They decide who gets the rizk in a way. That is one of the reasons why no one has tried to come up with a solution cuz its not wanted.
And i have also heard that jews have in their religion that they shud charge interest to non-jews. So thats also another reason (jews hve banking monopoly).

[kabir4_you]

Whoever says that the world or a country cannot run without the banking system is wrong. Islamic way of trade etc is the way for humanity. Check what the father of our nation said.

"We must work our destiny in our own way and present to the world an economic system based on true Islamic concept of equality of manhood and social justice. We will hereby be fulfilling our mission as Muslims and giving to humanity the message of peace which alone can save it and secure the welfare, happiness and prosperity of mankind."
(Speech on the occasion of the opening ceremony of the State Bank of Pakistan, 1st July, 1948).

Dont try to manipulate Islam as what others did to Christianity and Jewism etc.

[BackToCivicFaiez]

^^ Judaism...not jewism..lol