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 It does not have any maturity date, therefore the cash can be withdrawn at any time based on the customer’s demand.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?
Is it Permissible to Distribute Gifts to those who Open Accounts at Banks?
What’s the Committee’s Opinion Regarding the Following Proposals: Accepting Deposits, Execution of Banking Services and Financing & Investment Operations?
How to Calculate the Zakat on the Bank’s Items Such as Current Account, Investment Savings Accounts, Investment Deposit Accounts and Other Items?
What’s the Shariah Opinion Regarding Balances in the Claims Account That Have Been There for a Long Time Linked to Past Customers Who Cannot Be Reached?
Client Investment Savings, and Current Deposits as Guarantee in Murabahah Transactions

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?
+ more

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?
+ more
Can Two Banks Agree to Allow Each Other Overdraft Privileges as Interest-Free Loans?
Can an Islamic Bank Allow a Client with a Large Account to Remain Overdrawn for a While?
Can an Islamic Bank and Conventional Bank Loan Each Other Money if the Loans Bear No Interest?
The Shariah Advisory Council of Bank Negara Malaysia (the SAC) 153rd Meeting
Is an Exchange of Deposits a Type of Loan with an Added Benefit?
RESOLUTION No. 76/7/8: PROBLEMS OF ISLAMIC BANKS
آلية إثبات القيد المحاسبي لعمليات تبادل الودائع (تبادل القروض)
القروض المتبادلة
Can an Islamic Bank Take Loans from Banks That Are Indebted to It?
Is It Allowed to Exchange Loans in Different Currencies?
Is It Permissible for Banks to Exchange Interest-Free Loans?
What Is the Ruling if a Debtor, After Late Payment of a Debt, Voluntarily Loans the Same Amount to the Creditor for the Same Period?
Intra-Day Transaction as an Islamic Money Market Instrument
Liquidity Management Instrument Based on Qard
Hibah in Interbank Mudarabah Investment Contract
Islamic Profit Rate Swap Based on Bai` `Inah
Mudarabah Interbank Investment as Underlying Asset in a Deferred Payment Sale
The Existence of Underlying Asset Throughout the Sukuk Maturity Tenure
Is it Permissible for the Bank to Place Interest-Free Deposits with Other Banks on the Condition that these Banks Place Similar Deposits When Needed?
Is it Allowed for an Islamic Bank to Provide Qard Hasan to Another Bank on the Condition that the Latter Sells Foreign Currency to the Former Based Purchase Price Determined by the Central Bank?

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?
Is it Allowed for KFH to Purchase the Share of its Depositors?
Adaptation (Takyif) of Wadi`ah Yad Dhamanah as Qard
Application of Wakalah bi al-Istithmar in Deposit Product
Hibah in Wadi`ah Contract
Deposit Product Based on Mudarabah and Qard Contracts
Deposit Product Based on Wadi`ah and Mudarabah Contracts
Shariah Concept for the Operation of Islamic Deposit Insurance
Commingling of Funds Contributed by Islamic and Conventional Banking Institutions in Deposit Insurance
Guarantee Limit for Islamic Banking Deposits by PIDM
Definition of Term “Deposit” in Islamic Deposit Insurance
Status of PIDM’s Claim Against Depositors ’Claim in the Event of Winding up of an Islamic Banking Institution
Application of Muqasah in Islamic Deposit Insurance
Priority of Depositors in Recovering Deposit in the Event of Winding Up of an Islamic Banking Institution
Surplus Sharing Post Liquidation and Payment of Claims between Islamic and Conventional Banking Funds
Depositor Customer’s Investment Fund from Doubtful Sources
What’s the Committee’s Opinion Regarding the Following Proposals: Accepting Deposits, Execution of Banking Services and Financing & Investment Operations?
How to Calculate the Zakat on the Bank’s Items Such as Current Account, Investment Savings Accounts, Investment Deposit Accounts and Other Items?
Is It Allowed for KFH to Accept Deposits from Entities Whose Businesses Include Proscribed Activities in Order to Use These Deposits in Shariah Compliant Investments?
Is It Allowed for KFH to Give Out Gifts to Those Who Open Accounts with It?
Is It Allowed for KFH to Finance Its Customers’ Subscription to Al-Majd Satellite Channel and to Provide a Complimentary Subscription as a Gift Paid by KFH’s Set-Aside Funds?
Is It Allowed for KFH’s Executive Department to Register the Entire Expected Returns on Finance for the Capital Base Only and Not Share It with the Customer Base?

Shareholder Equity


Real Estate Investment Portfolios
إعطاء الموظفين قروضًا حسنة أو تمويلهم بربح أقل
مخصصات معالجة الديون المشكوك في تحصيلها
(كسر الوديعة (التخارج
How Should Zakah Be Calculated for the Solar Year?
Is it Impermissible to Separate the Money of Depositors from the Money of Shareholders?
Is it Allowed to an Islamic Financial institution to Buy Its Depositors’ Shares?
Is it Allowed for KFH to Purchase the Share of its Depositors?
What Entity is Responsible for Paying Zakat Providing that A Company Acts as the Manager of Another that Represents the Shareholders?
What’s the Shariah Ruling Regarding a Loan with Specified Nominal Interest Given to a Company by the Shareholders Owing to Investment Conditions?
Is It Allowed for a Bank Converted to Conventional to Islamic to Distribute Any Profits Resulting from the Interest Earned to its Shareholders?
How Can KFH as a Shareholder of an Islamic Bank that Converted from the Conventional System Handle the Profits Provided as Cash and Bonus Shares?
Is It Allowed for KFH to Pay Shareholders’ Contribution in a Company as Qard Hasan and Mortgage the Shares of the Shareholders as a Security for the Benevolent Loan?
What’s the Shariah Characterization of the Current Account?
Is It Allowed for KFH’s Executive Department to Register the Entire Expected Returns on Finance for the Capital Base Only and Not Share It with the Customer Base?

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?
Is it Allowed to Enter in an Investment where the Capital is Guaranteed?
Is it Allowed to Enter in an Investment where the Capital is Guaranteed?
Is the Guarantee of Specific Percentage in Investment Contracts Permissible?
What are the Rulings of the Investment Agency Contract?
What are The Shari‘Ah Rulings on the Stipulation in Wakalah Contract?
Is it allowed to invest on behalf of the customers in commodities and minerals in which banks compete to invest the wealth of their customers?
What is the Position of the Fund’s Manager vis-a-vis the Discount Percentage on the Sale of Shares and the Additional Profits Earned in the Event of Positive Market Performance?
Is it Allowed for KFH to Purchase the Share of its Depositors?
Mudarabah Investment Certificate as Security
Administrative Costs in Mudarabah Deposit Account
Intra-Day Transaction as an Islamic Money Market Instrument
Application of Wakalah bi al-Istithmar in Deposit Product
Depositor Customer’s Investment Fund from Doubtful Sources
Financial Market Instruments as Underlying Asset in Deferred Transaction
Hukum Pembayaran Simpanan Kumpulan Wang Simpanan Pekerja (KWSP) Bagi Ahli Yang Memeluk Islam
Wang simpanan KWSP dan PERKESO
Akaun Simpanan Yang Tidak Aktif Dalam Lembaga Urusan Dan Tabung Haji
Status Terkini Pematuhan Syariah Skim Sijil Simpanan Premium Bank Simpanan Nasional (BSN)
Pelaburan Dalam ASN, ASB Dan Seumpamanya
Hukum Pelaburan Ke Atas Syarikat Swiss Cash Mutual Fund
Bayaran Zakat Kumpulan Wang Simpanan Pekerja (KWSP) Sejurus Pengeluaran - Satu Alternatif
Zakat Wang KWSP
Fatwa Tentang Kaedah Pembayaran Zakat KWSP
Menentukan Satu Kaedah Tetap Bagi Zakat KWSP
Is it allowed for an Islamic Bank to invest a portion of its capital in buying the stock of the companies that are not aimed at dealing with interest?
What is the Ruling on Investing zakat Funds, Funds from Dormant Accounts or Those Tainted by riba or Suspected of Being Tainted by riba?
What is the Ruling on Investing zakat Funds, Funds from Closed Accounts or Those Tainted by riba or Suspected of Being Tainted by riba?
What is the Ruling on the zakat on Financial Portfolios that Represent Funds for Investment in Foreign Currency Exchange?
Is it allowed for an Islamic Bank to invest a portion of its capital in buying the stock of the companies that are not aimed at dealing with interest?
What's the Shariah Opinion Regarding the Establishment of a Company Abroad to Benefit from Tax Exemptions Providing that these Companies Are Involved in Interest?
What's the Shariah Opinion Regarding the Investments in Shares and Real Estate Using Funds that Exclusively Belong to Shareholders and those Belong to Investors?
Is It Allowed for KFH to Invest in a Company that Mainly Manufactures Temporary Birth Control Medicine?
Is It Allowed for Financial Investment Companies that Have Attained Credit Lines to Use Credit Lines Granted to them by KFH to Purchase Shares Through Deferred Murabahah Sales?
Is It Allowed for Financial Investment Companies that Have Attained Credit Lines to Use Credit Lines Granted to them by KFH to Purchase Shares Through Deferred Murabahah Sales?
Is It Allowed for KFH to Be the Selling Agent for the Units of an Islamic Fund Using Subscription Application Forms That Bear the Name of a Conventional Bank as the Investment Trustee?
What’s the Shariah Opinion Regarding Shariah Compliance Matters of I’mar Fund in Which KFH is a Representative in the Investment Sector That Sells Units of the Fund?
Is It Allowed for KFH to Invest in Companies Whose haram Elements Are Less Than Those Mentioned Percentages Because the haram Has Become so Widespread?
Is It Allowed to Purchase Companies That Provide Support Services to Customers That Are Involved in Businesses That Are Not Shariah Compliant?
Is It Allowed for KFH to Be the Selling Agent for a Fund That Was Established for Trading in Shares of GCC Companies Mainly Partaking in Shariah Compliant Activities?
Is It Allowed for KFH to be the Selling Agent for Petra Investment Fund?
What Are the Proposed Members of Shariah Committee for Al-Fajr Islamic Find Which KFH Is Willing to Invest in?
المحافظ الاستثمارية لشركات التأجير المالي التقليدية

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