ABSA Bank Discussion

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  Q: What is the 12 months fixed deposit rate for 5 Million Rand interest paid at maturity. (pensioner)

  Reply • clemens from South Africa •
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  Q: I am ABSA employee and i have opened trusave account that is linked to my saving account.Now i want to open another account, whereby i can have access to it at any given time,where i can make deposit or transfers,with low rate ,tax free.Kindly advise if fixed deposit will be suitable

  Reply • Nape from South Africa •
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  Q: Is the profit shares on fixed deposit according to shariah law is it halal n not called interest.

  Reply • Soyab patel from South Africa •

  • R: Unlike the traditional banking model, Shari’ah banking is a system based on the principles of Shari’ah law (the law adopted by Muslims predominantly) and guided by Islamic economic principles. It does not recognise money as an asset in its current form and thus prohibits the paying or receiving of interest for the use of money. It also prohibits participation in speculative markets which is tantamount to gambling under Shari’ah Law and no investments or participation is allowed in prohibited industries like tobacco, alcohol, arms and weaponry. Shari’ah banking is also asset-backed, which means that a transaction isn’t concluded unless there is a physical asset in the transaction. The asset is then sold to the client at a mark-up or alternatively, the client pays us for the use of that asset. Thus, Shari’ah Banking by its very nature is not specific to Muslims only. Agnostic of religion, people from all walks of life can participate in Shari’ah Banking products and what attracts non-Muslims is the ethical component of the proposition which is the fact that money within the system will never be used for “sin” industries such as alcohol, tobacco, pornography as well as what can be considered unethical industries such as gambling, arms and weaponry.

    Reply • Mohammed •