Islamic student account launched

leaskovski

leaskovski

leaskovski

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http://news.bbc.co.uk/1/hi/business/5274940.stm

Beebing on the beeb said:
Lloyds TSB is to offer student current accounts through its 2,000 branches which comply with Islamic law.
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How much does it suck that Islamic law says you can't get interest on your money! :eek: Daft! Just Daft!

The Law said:
PRINCIPLES OF ISLAMIC BANKING
All money must be invested in industries Muslims consider ethical
The giving or receiving of interest is forbidden
Money cannot be simply traded for money
Money can be used to buy goods or services, which can then be sold for a profit
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if you read the small print you *dont* get any interest on your money but you DO get a goody-bag full of volatile substances.

/me pulls on flame-retardent suit and makes a hasty retreat
 
Dear god what business is it of yours whether or not islam gives interest out or not??. Its not like the banks give out oodles of interest for keeping your money with them is it???.

They just charge massive amounts of interest from money you borrow from them:p
 
Borris said:
FFS - What next? Allow them to have their own halal shops?
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The horror!

Can I be the first to say - gigantic who cares? How is this actually a news story - a company has decided to tap into a new market, not a desperately new idea really.
 
OMG!!!! Company tries to offer an alternative product shocker!!!

Seriously, is this even news? Banks offer a huge range of services with different criteria, investment types and so on. This is no different. It's a service tailored to how a certain segment of the market wishes to bank.
 
A good friend of mine is a mortgage advisor and he told me a few years ago about sharia mortgages that his employers oblige to. I was a bit confused at the discrepancy as why most people pay the interest and sharia mortgages were interest free... have I misinterpreted this interest free concept? :confused:
 
I dont know like, why should I be charged on the money in (or is it out) of my overdraft if they aren't?

I think I'll start my own religon where you get paid for the hours you dont work and dont get paid for the hours you do? Anyone wanna join.

In a few years the government will reconise us and pay us money (somehow :confused: )
 
outdated...thats what those weird islamic laws are. You cant do this, cant do that then the West is responsible for your headaches...

apologies to all muslim members, love ya all(really) but regardless of the religion, I have this thing for finding people, dictated by religion, to be very weird and even spooky.
 
JayMax said:
A good friend of mine is a mortgage advisor and he told me a few years ago about sharia mortgages that his employers oblige to. I was a bit confused at the discrepancy as why most people pay the interest and sharia mortgages were interest free... have I misinterpreted this interest free concept? :confused:
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They were talking about it on Radio 2 earlier today, and it works like this... the bank buys the house and rents it to the Islamic dude. The rent over time pays off the house. However, i think they must revalue the house every so often or add a fair bit of management fees to the rent as to make the profit from it.
 
JayMax said:
have I misinterpreted this interest free concept? :confused:
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Yes, can't remember how it works, but though they don't pay interest as such, the bank still makes their money out of it (think it was something like the bank actually buys the house then sells it on at the original price + "interest").

Jokester

Edit: What leaskovski says is right if I remember right.
 
JayMax said:
... have I misinterpreted this interest free concept? :confused:
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Yes you have. The Islamic mortgage involves the bank buying the property at market value, then selling it back to the mortgage holder at an inflated price. This price is agreed from the outset and the difference is similar to what you would pay in interest on a 'conventional' mortgage, but it's not interest as you're just paying back a monthly installment of the agreed price, which will never increase over time.
 
Jokester said:
Yes, can't remember how it works, but though they don't pay interest as such, the bank still makes their money out of it (think it was something like the bank actually buys the house then sells it on at the original price + "interest").

Jokester

Edit: What leaskovski says is right if I remember right.
Click to expand...

Makes sense now.
 
leaskovski said:
They were talking about it on Radio 2 earlier today, and it works like this... the bank buys the house and rents it to the Islamic dude. The rent over time pays off the house. However, i think they must revalue the house every so often or add a fair bit of management fees to the rent as to make the profit from it.
Click to expand...

The only difference is that if the holder of a sharia mortgage is on benefits then he gets his 'rent' paid for him...

And for all the 'FFS non story' sensationalists in this thread, who paradoxically thought it was such a non-story that it required their comment, signs of increasing segregation are something we need to examine for fear of an aparthied society developing.
You have to ask yourself whether it is appropriate that there should be two types of food, one for group A and one for group B. Two types of bank account, two types of mortagage, two types of law etc. etc.
 
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