What is your opinion on Savings Account (Bank interest) in light of Islam?

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I would request you to read my opinion its post number 34 , you can tell me what you think about that .

I think a Caliphate would really struggle in today’s world. To properly avoid interest and follow strict Islamic laws, it would probably have to close itself off or only trade with similar countries. I don’t think it would be able to trade at competitive prices to foreign countries without using interest as a tool to aid both manufacture of products and in trade deals. But that would make it very hard to compete and survive in the global economy. You’d lose out on trade, investment, and access to goods that other countries can make more efficiently.

Things like banning alcohol or enforcing modest clothing could work inside the country. But no government can completely avoid interest in the modern world. Even countries like Saudi Arabia and Pakistan still use interest-based loans and systems because otherwise their economies would collapse.

With the internet and global media, it’s also impossible to stop outside influence. And like we see in Iran, there would always be fights between religious leaders and practical politicians over how to run things.

Overall, I think individuals can try to avoid interest in their personal lives, but for a government, it’s just not realistic anymore. The world is too connected and too dependent on the global financial system.

 

[Justcrazy]

I think a Caliphate would really struggle in today’s world. To properly avoid interest and follow strict Islamic laws, it would probably have to close itself off or only trade with similar countries. I don’t think it would be able to trade at competitive prices to foreign countries without using interest as a tool to aid both manufacture of products and in trade deals. But that would make it very hard to compete and survive in the global economy. You’d lose out on trade, investment, and access to goods that other countries can make more efficiently.

Things like banning alcohol or enforcing modest clothing could work inside the country. But no government can completely avoid interest in the modern world. Even countries like Saudi Arabia and Pakistan still use interest-based loans and systems because otherwise their economies would collapse.

With the internet and global media, it’s also impossible to stop outside influence. And like we see in Iran, there would always be fights between religious leaders and practical politicians over how to run things.

Overall, I think individuals can try to avoid interest in their personal lives, but for a government, it’s just not realistic anymore. The world is too connected and too dependent on the global financial system.

Do you understand what khilafat means ? It means compliance of laws of God in totality , not a few aspects. It is not limited to few countries but across a major chunk of Muslim countries. You will always have issue when you try to have legs on two different boats. One vehicle can have only one driver otherwise there will be contradiction.

I will say again , without Khilafat there is body but no spirit in Islam.

 

[sweep_shot]

I think a Caliphate would really struggle in today’s world. To properly avoid interest and follow strict Islamic laws, it would probably have to close itself off or only trade with similar countries. I don’t think it would be able to trade at competitive prices to foreign countries without using interest as a tool to aid both manufacture of products and in trade deals. But that would make it very hard to compete and survive in the global economy. You’d lose out on trade, investment, and access to goods that other countries can make more efficiently.

Things like banning alcohol or enforcing modest clothing could work inside the country. But no government can completely avoid interest in the modern world. Even countries like Saudi Arabia and Pakistan still use interest-based loans and systems because otherwise their economies would collapse.

With the internet and global media, it’s also impossible to stop outside influence. And like we see in Iran, there would always be fights between religious leaders and practical politicians over how to run things.

Overall, I think individuals can try to avoid interest in their personal lives, but for a government, it’s just not realistic anymore. The world is too connected and too dependent on the global financial system.

Global financial system is a giant ponzi scheme. It is bound to collapse at some point.

World should go back to gold and silver or at least currencies backed by gold and silver.

This interest-based system is evil and not sustainable.

 

[Cover Drive Six]

Global financial system is a giant ponzi scheme. It is bound to collapse at some point.

World should go back to gold and silver or at least currencies backed by gold and silver.

This interest-based system is evil and not sustainable.

And you studied MBA? The world has been sustaining itself through this global economic system for thousands of years, yet you seem to have no understanding of how the finance system actually works, and you are challenging it based on your Sharia finance knowledge? LOL.

Show me one Muslim country that has successfully sustained and implemented a purely religious financial system. Just one.

 

[DeadlyVenom]

y

Your post is good but also you should mention that those things which are explicitly prohibited in the Quran , but the issue of photographs were not mentioned in the Quran. People who were against it were mistaken. They fail to realize that all pictures cannot be prohibited.

yeah you are 100% right here

 

[DeadlyVenom]

And you studied MBA? The world has been sustaining itself through this global economic system for thousands of years, yet you seem to have no understanding of how the finance system actually works, and you are challenging it based on your Sharia finance knowledge? LOL.

Show me one Muslim country that has successfully sustained and implemented a purely religious financial system. Just one.

He mentioned Gold Standard, that has only been removed around 90 years ago

Which global economic system has been in place for 1000s of years?

 

[LordJames]

And you studied MBA? The world has been sustaining itself through this global economic system for thousands of years, yet you seem to have no understanding of how the finance system actually works, and you are challenging it based on your Sharia finance knowledge? LOL.

Show me one Muslim country that has successfully sustained and implemented a purely religious financial system. Just one. ​

Kitabul-Khiraj by Imam Abu Yusuf which was written around 775 (if I am not mistaken) became the benchmark for Islamic economic and was applicable until roughly 1922 in most concepts until the Ottoman Empire was dissolved, successive generations refined it accordingly.​

He mentioned Gold Standard, that has only been removed around 90 years ago

Which global economic system has been in place for 1000s of years?

Your post is good but also you should mention that those things which are explicitly prohibited in the Quran , but the issue of photographs were not mentioned in the Quran. People who were against it were mistaken. They fail to realize that all pictures cannot be prohibited.

Commodity pricing and financing and currency is discussed in the discussion about Onions (because there was shortage of Onions that year) so Imam Abu Yusuf uses that as an example.

كتاب الخراج لأبي يوسف - المكتبة الشاملة

كتاب الخراج لأبي يوسف - المكتبة الشاملة

shamela.ws

 

[globetrotter]

I am consultant for many banks in Mumbai region.... i came to know from top banks officials about some Islamic institutions/ organisations not accepting interests on their Fixed Deposits as per their belief.... then banks had resolved this issue by giving gifts every year to these insitutions/organisations to compensate the interest amount. One year Bank given air conditioning system, next year they give water cooler system, etc.

 

[AamchiMumbaikar]

How are Muslims buying houses in the west, is it all savings ?

 

[LordJames]

How are Muslims buying houses in the west, is it all savings ?

Savings + Borrowing from family + Plenty of Non-Interest based choices (depending on which country people live) + also conventional (regular) mortgages

So there are differences.

 

[Justcrazy]

I am consultant for many banks in Mumbai region.... i came to know from top banks officials about some Islamic institutions/ organisations not accepting interests on their Fixed Deposits as per their belief.... then banks had resolved this issue by giving gifts every year to these insitutions/organisations to compensate the interest amount. One year Bank given air conditioning system, next year they give water cooler system, etc.

So you mean to say the Bank is changing its business procedure ?

 

[Kianig89]

Ain't the Islamic Savings Acct based on Profit/Loss basis, though they never go in loss , may due to prudent investing ?.

Acct holder is the lender , while bank is borrower and doing business on customers part and then some portion of profit/loss is shared at maturity, where profit/loss is decided on weightage, isn't the concept that simple.

 

[globetrotter]

So you mean to say the Bank is changing its business procedure ?

No... on the contrary Banks are compensating the interest amount to its customer.

 

[Varun]

How are Muslims buying houses in the west, is it all savings ?

Once the "God save the King" chants start, all these medieval rules walk.

Else they won't be in the West in the first place.

 

[Justcrazy]

No... on the contrary Banks are compensating the interest amount to its customer.

That is interesting , but that is what I said. Usually banks do not do that.

 

[globetrotter]

That is interesting , but that is what I said. Usually banks do not do that.

It upto the Bank's Management to decide, that Bank Management's taken decision to give those institutes gifts equivalent to the interest amount which is beneficial for both parties. For Islamic institutes, they not broken their beliefs and Bank not under any favor

 

[LordJames]

Ain't the Islamic Savings Acct based on Profit/Loss basis, though they never go in loss , may due to prudent investing ?.

Acct holder is the lender , while bank is borrower and doing business on customers part and then some portion of profit/loss is shared at maturity, where profit/loss is decided on weightage, isn't the concept that simple.

That is correct.

That is interesting , but that is what I said. Usually banks do not do that.

As I have said before, consumers have the power. Muslims all over the world are demanding alternatives and banks are in there to make money and they will change their business model to make more money.

 

[Kianig89]

BtW the rental charged by Islamic Banks in Pakistan is usually more than interest on products charges by conventional banks.

 

[LordJames]

BtW the rental charged by Islamic Banks in Pakistan is usually more than interest on products charges by conventional banks.

Same for "Islamic Mortgage" in the West , rates are slightly higher then convention mortgages...