Are Islamic deposit products similar to their conventional peers? A Malaysia perspective

One may view that Islamic deposit products include current, savings and fixed accounts (CASAFA) taken up for different purposes, transaction, precautionary and investment, respectively . Clearly, Islamic CASAFA contains no riba al-qard or riba out of lending and borrowing whilst its peer considers riba al-qard. Though both are different, but some folks take the differences for granted, prioritising the execution of a financial transaction rather considering the halalness factor when executing the transaction.

To a certain extent, there exists a gap between laymen and believers of Islamic deposit products. To improve, this write-up intends to elaborate FOUR (4) differences between Islamic CASAFA and its conventional counterpart. The details are provided.

POINT #1 –...