Source of Funds

Islamic banks which consist of their own capital and equity will also rely on two other main sources of funds. The first is transactional deposits which are mainly risk-free and provide no return. The second is the investment deposits which carry the risk of loss in capital for the investments made. There are a total of four main types of deposits. For further details see: ISRA, Islamic Financial System; Principles and Operations.

Deposit Funds

Generally, a savings deposit permits customers to deposit and withdraw their money at any time and does not require a minimum balance in the deposit account. It does not have any maturity date, therefore the cash can be withdrawn at any time based on the customer’s demand. For further details see: ISRA, Islamic Financial System; Principles and Operations.

Can a Minimum Balance Be Stipulated to Maintain an Investment Account?
What to Do with Profits from Investment Accounts Closed by Their Owners when the Old Address Is not Valid?
Can an Islamic Bank Provide Aid to Certain Clients in Return for Keeping Accounts with the Bank?
RESOLUTION No. 86/3/95: "BANK DEPOSITS (Bank Accounts)"
How to Treat an Overdraft on an Investment Account?
Can an Islamic Bank Sequester Funds in the Account of a Customer Who Applies to Open an L.C.?
الجوائز النقدية أوالعينية
الجوائز النقدية أو العينية على الحسابات
ودائع الادخار
توزيع جوائز للحسابات الجارية والادخارية
Transferring The Balance Of Certain Current Accounts To Savings Accounts
What is the Rule When an Unrestricted Investment Deposit Holder Wants to Withdraw His Deposit before the End of the Deposit Period?
Is It Allowed to Open an Account for a Minor Orphan with His Guardian Listed as His Father?
Can an Islamic Bank Impose Fees on Some Accounts and Not Others?
Is a Customer Allowed to Transfer Funds from His Savings Account to His Current Account?
Is It Allowed to Restrict the Right to Withdraw from an Investment Deposit Account?
How Should an Amount Transferred from a Savings Account to an Insurance Account Be Considered?

A current deposit account is a form of demand deposit that offers users safe-keeping of their cash deposits, and the choice to be paid in full upon demand.

Can the Lessor Invest the Tenant’s Security Deposit?
Can High Net-Worth Accountholders Be Promised Special Privileges?
Can the Bank Impose Charges on Withdrawals from a Current Account?
Can the Bank Impose Restrictions on Withdrawals from a Current Account?
Changing a Check in a Foreign Currency; What Day’s Price Should Be Recorded?
Using Current Account Deposit as Pawn
Can an Islamic Bank Charge a Customer for Writing a Bounced Check?
Can an Islamic Bank Provide Aid to Certain Clients in Return for Keeping Accounts with the Bank?
RESOLUTION No. 86/3/95: "BANK DEPOSITS (Bank Accounts)"
Resolution No. 83: Amānah (Safekeeping) Precious Metals Accounts
Resolution No. 149: The Corporation usage/disposal of (inactive) small-balance accounts with the guarantee of such accounts
Can an Islamic Bank Sequester Funds in the Account of a Customer Who Applies to Open an L.C.?
قرار رقم 143 (1/16) بشأن زكاة الحسابات المقيدة وشركات التأمين الإسلامية والتأمينات النقدية ومكافآت نهاية الخدمة
الجوائز النقدية أوالعينية
الجوائز النقدية أو العينية على الحسابات
الحسابات الجامدة (غير المتحركة)
تقاضي البنك مصاريف من العميل لفتح الحساب الجاري وإمساكه
توزيع جوائز للحسابات الجارية والادخارية
Wadiah And Mudharabah Current Account
Transferring The Balance Of Certain Current Accounts To Savings Accounts
Can Money in a Current Account Be Used as Security for a Debt?
What is the Rule When an Unrestricted Investment Deposit Holder Wants to Withdraw His Deposit before the End of the Deposit Period?
Can an Islamic Bank Charge a Fee for Issuing a Bank Draft?
What is the Ruling on Funds with Unknown Account Holders?
Can an Islamic Bank Give Financial Aid to Charitable Organizations with Accounts at the Bank?
Can an Islamic Bank Give Some Current Account Holders Special Privileges?
Can an Islamic Bank Give Gifts to Holders of Accounts Having Funds above a Certain Amount?
Can an Islamic Bank Impose Fees on Some Accounts and Not Others?
Is a Customer Allowed to Transfer Funds from His Savings Account to His Current Account?
Is it Allowed to Deposit Funds in a Conventional Bank in Exchange for Reduced Fees on Tawarruq Transactions?
How Should an Amount Transferred from a Savings Account to an Insurance Account Be Considered?

Term Deposit is a type of arrangement where the customer's deposits are held at a bank for a fixed term. These deposits will then be deposited to a number of investment pools where it will be invested in business activities which are in accordance to the Shari'ah. The money deposited in a term deposit can only be withdrawn at the end of the term as stated in the contract or by giving a predetermined number of days as notice.

Can an Islamic Bank Let Companies That Deal With Usury Have Current Or Investment Accounts?
RESOLUTION No. 86/3/95: "BANK DEPOSITS (Bank Accounts)"
Investment Deposit Account As Pawn in Murabaha Financing
قرار رقم 143 (1/16) بشأن زكاة الحسابات المقيدة وشركات التأمين الإسلامية والتأمينات النقدية ومكافآت نهاية الخدمة
الجوائز النقدية أو العينية على الحسابات
انخفاض قيمة العملة
أرباح الودائع بالعملة الصعبة
استثمار البنك ودائع العملاء بالعملة الصعبة وردها بالعملة نفسها
الحسابات الجامدة (غير المتحركة)
(كسر الوديعة (التخارج
حساب فترة الوديعة الاستثمارية
الأرباح من وديعة الاستثمار
العائد على ودائع الاستثمار
عمل وديعة مخصصة من دون خلطها بأموال المصرف
أرباح المضاربة في حالة سحب الوديعة قبل انقضاء مدة المضاربة
توزيع الجوائز النقدية لودائع الاستثمار
توزيع الأرباح الناتجة عن عملية الاستثمار
When Does an Agent Record the Profit from Murabahah on Behalf of His Principal?
Special Investment Account
Can an Investment Deposit be Used as Security for a Deferred Payment Sale?
What is the Rule When an Unrestricted Investment Deposit Holder Wants to Withdraw His Deposit before the End of the Deposit Period?
When Should Profits Earned Be Credited to the Accounts of Investment Account Holders?
Can an Investor Withdraw from an Investment Project before Its Term?
Can a Condition of Investment Link the Right of Withdrawal to Relinquishment of any Share in the Profit or Loss?
How to Treat a Customer Who Withdraws his Deposit from an Unrestricted Investment Account before the Agreed Time?
Is It Allowed to Mix Deposits of Different Periods?
Can Investment Accounts Share in the Same Profit and Loss Calculation if They Are Opened on Different Dates?
How to Treat a New Deposit in a Mudarabah Investment Account?
Is It Allowed to Restrict the Right to Withdraw from an Investment Deposit Account?
What is the Investment Procedure in Case an Investment Savings Account is Opened in a Foreign Currency?
What is the Ruling on Withdrawal of a Deposit Made in Foreign Currency from an Investment Account Before the End of the Deposit Period?
Issues in Foreign Currency Investment
Is It Allowed to Invest Zakah Funds?
Charging Fees on Services
What is the ruling on charging a nominal fee for withdrawing an investment deposit before the end of its period?

The Shariah Advisory Council of Bank Negara Malaysia (the SAC) 155th Meeting
RESOLUTION No. 86/3/95: "BANK DEPOSITS (Bank Accounts)"
Is an Islamic Bank Responsible for the Source of the Funds by Which the Debt Owed to It Is Repaid?
RESOLUTION No. 76/7/8: PROBLEMS OF ISLAMIC BANKS
فتح حساب مشترك بالتضامن بين طرفين تجمعهم علاقة نسب
إعطاء الموظفين قروضًا حسنة أو تمويلهم بربح أقل
Can Contests with Prizes Be Used to Encourage Tenants of Properties Owned by an Islamic Bank to Open Accounts with the Bank to Facilitate Rent Payments?
If One Partner Injects Additional Capital after the Initial Capitalization, Should the Shares of Profit Be Adjusted?
Can an Adult Open an Account for a Minor with Restrictions on the Right to Withdraw from It?
Is it Impermissible to Separate the Money of Depositors from the Money of Shareholders?

Investment Funds


Leasing Fund: Calculating Zakah
Can an Islamic Bank Let Companies That Deal With Usury Have Current Or Investment Accounts?
Providing Customers No-Interest Loans to Trade Currency for Profit
The Owner of an Investment Deposit Account Relinquishes His Account to Other Depositors for an Agreed Price
What to Do with Profits from Investment Accounts Closed by Their Owners when the Old Address Is not Valid?
Can an Islamic Bank Fund Recreational Activities for Its Workers Using Depositor or Shareholder Funds?
The Shariah Advisory Council of Bank Negara Malaysia (the SAC) 135th Meeting
RESOLUTION No. 86/3/95: "BANK DEPOSITS (Bank Accounts)"
How to Treat an Overdraft on an Investment Account?
Investment Deposit Account As Pawn in Murabaha Financing
قرار رقم 143 (1/16) بشأن زكاة الحسابات المقيدة وشركات التأمين الإسلامية والتأمينات النقدية ومكافآت نهاية الخدمة
احتياطي معدل الأرباح
دفع ضريبة عن مخصص مخاطر الاستثمار وقيدها على حساب الرصيد المتجمع في حساب مخاطر الاستثمار
دفع الزكاة عن أرباح أموال المساهمين أو الاحتياطيات
استثمار أموال البنك في الأسهم والعقارات
حساب فترة الوديعة الاستثمارية
الأرباح من وديعة الاستثمار
Can an Investment Deposit be Used as Security for a Deferred Payment Sale?
Does Profit-and-Loss Sharing Apply to the Shareholders’ Reserve Funds?
What is the Rule When an Unrestricted Investment Deposit Holder Wants to Withdraw His Deposit before the End of the Deposit Period?
Can a Charitable Organization Invest Donated Funds to Generate Income to Be Spent in Charity?
Can Real Estate Portfolios of Differing Status Be Merged Together?
When Should Profits Earned Be Credited to the Accounts of Investment Account Holders?
Can an Investor Withdraw from an Investment Project before Its Term?
Can a Condition of Investment Link the Right of Withdrawal to Relinquishment of any Share in the Profit or Loss?
Is It Allowed to Mix Deposits of Different Periods?
Can Investment Accounts Share in the Same Profit and Loss Calculation if They Are Opened on Different Dates?
How to Treat a New Deposit in a Mudarabah Investment Account?
Is it Allowed to Deposit Funds in a Conventional Bank in Exchange for Reduced Fees on Tawarruq Transactions?
Is It Allowed to Restrict the Right to Withdraw from an Investment Deposit Account?
What is the Investment Procedure in Case an Investment Savings Account is Opened in a Foreign Currency?
What is the Ruling on Withdrawal of a Deposit Made in Foreign Currency from an Investment Account Before the End of the Deposit Period?
Issues in Foreign Currency Investment
Is It Allowed to Invest Zakah Funds?
Is It Allowed to Participate in a Project Involving Contracts That Contain Some Prohibited Clauses?
Is it Allowed to Lease a Property and Build Residences to be Leased to the First Owner of The Property?
Is it Permissible in a Project to Accept Shares of Companies that do not Conform to Shari‘ah?
Is it Allowed to Purchase Existing Companies in order to Islamize them?
What are the Rules to be Observed Concerning Al-Yamamah Portfolio Account?
What are the Shari‘ah Conditions to Invest in a Fund?

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