Joint Investment Account

Definition of "Joint Investment Account"

A type of investment deposit accepted by some Islamic banks. These account holders deposit cash with the intention of sharing in profit or loss of the bank arising from the investment of these funds. A joint investment account could be a saving account, notice account or a fixed term account. Each category of the joint investment account has a different weightage system for calculating profit or loss. Profit or loss relating to activities financed from joint investment account funds is accounted for separately from other activities of the bank.