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ATCF Report Writing Savings Account in Islamic Finance Savings accounts in conventional banking attract higher rates of interest from the bank to the saver than might be available in an interest paying current account. They usually will not offer any form of lending (overdraft). Competition to provide the most attractive rate of interest is strong in conventional banking, and usually the higher rate accounts have more restrictions in terms of the frequency of times withdrawals can be made and in what form they can be made. An Islamic savings account is structured completely differently from a conventional savings account. An Islamic savings account is in fact an investment account, where the bank invests the money deposited in the account. This is a straightforward mudaraba process. Mudaraba is where the provider of the funds, the saver, entrusts their money to an expert investor, the bank, so that they can make a profit from it. The bank will pool all such savings account money and invest it collectively in Shari'a-compliant businesses. The profits from such investment are then shared between the saver and the bank. How the profits are distributed between savers and the bank will depend on the contract applicable to the account. The amount returned will vary according to the profit generated and will be paid to the saver usually as a percentage figure based upon the lowest balance retained in the account during the period of calculation, whether that be a month, quarter or year. In the event of a loss occurring then the saver will lose money but under most terms the bank will not. The fact that the holder of the savings account may lose capital indicates that Islamic savings accounts are very different products to conventional savings accounts where deposits held in a conventional savings account would only be lost in the event of the bank itself going into liquidation and even then, most banks have such deposits insured by central bank schemes to a certain extent). "Write a detailed report on Retail Banking products validated by Islamic Finance" ATCF Report Writing Savings Account in Islamic Finance Savings accounts in conventional banking attract higher rates of interest from the bank to the saver than might be available in an interest paying current account. They usually will not offer any form of lending (overdraft). Competition to provide the most attractive rate of interest is strong in conventional banking, and usually the higher rate accounts have more restrictions in terms of the frequency of times withdrawals can be made and in what form they can be made. An Islamic savings account is structured completely differently from a conventional savings account. An Islamic savings account is in fact an investment account, where the bank invests the money deposited in the account. This is a straightforward mudaraba process. Mudaraba is where the provider of the funds, the saver, entrusts their money to an expert investor, the bank, so that they can make a profit from it. The bank will pool all such savings account money and invest it collectively in Shari'a-compliant businesses. The profits from such investment are then shared between the saver and the bank. How the profits are distributed between savers and the bank will depend on the contract applicable to the account. The amount returned will vary according to the profit generated and will be paid to the saver usually as a percentage figure based upon the lowest balance retained in the account during the period of calculation, whether that be a month, quarter or year. In the event of a loss occurring then the saver will lose money but under most terms the bank will not. The fact that the holder of the savings account may lose capital indicates that Islamic savings accounts are very different products to conventional savings accounts where deposits held in a conventional savings account would only be lost in the event of the bank itself going into liquidation and even then, most banks have such deposits insured by central bank schemes to a certain extent). "Write a detailed report on Retail Banking products validated by Islamic Finance

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