The MSN is "advertorializing" for sharia finance. "Get a better rate with a Sharia savings account," shouts this MSN article in no less than three headlines and sub heads. Oh yes, let's enrich jihadist fundraising, and while we are at it, let's starve whole business sectors like pork, tobacco, alcohol and some forms of entertainment. And 2.5% must got to zakat (Islamic charities notorious for funding jihad). The largest terrorist funding trial in our nation's history, the Holy Land Foundation trial, implicated over 300 Muslim groups in the United States (ie CAIR, ISNA, MSA, MSU, ICNA et al) of funding islamic terror.
The claim that Islamic finance does not charge interest is a ruse. Atlas commenter JD elucidates:
The interest-bearing loan is actually more equitable and fair than the Sharia loan. With an interest-bearing loan, you can typically pay it back ahead of time and thereby save on the interest payments, assuming it is structured to allow this. That way if your fortunes change, you can pay it off early. With a Sharia loan, you swallow the whole economic costs up front, and then can never pay it off early. Nor can you save by re-financing to take advantage of cheaper interest rates. Sharia Law loans thereby are more advantageous to the lender than to the borrower, and so are favored by Kings and other potentates who want to extract as much from their populations as possible.
Get a better rate with a Sharia savings account
Savings accounts that are compliant with Islamic Sharia Law are now common within UK banking. And with competitive rates on offer, people of all religions stand to benefit…
Islamic banking is on the up.
Formerly, Britain’s 2.8 million Muslims were forced to compromise either their interest payments or beliefs in the search for a decent savings account. This is because traditional UK banking methods do not adhere to Islamic Sharia law.
Now, several banks now offer Sharia-compliant products. And what’s more, some non-Muslims are now turning to these new accounts for both their decent returns and the alternative philosophy that backs them.
The principles of Islamic banking are taken from Sharia – the religious law and moral code set out in the Quran and Sunnah. The key difference between this form of banking and the traditional Western method is a ban on interest payments. This is because Muslims are not allowed to benefit from lending out money or receiving money.
For example, in the case of an Islamic mortgage the borrowers and the bank will usually both put forward money and buy the property in a partnership. From here the partnership will rent out the home to the borrower and share the takings. At the same time, the customer will gradually buy out the bank’s share of the property – the equivalent of paying off a mortgage.
Islamic savings accounts are slightly different. Instead of paying interest, profits made off deposits are ‘shared out’. These profits come from ‘real’ transaction investments, such as putting money into a company.
Deposits are not invested in complex financial products (as lending money in banned) or anything that is contrary to other Islamic teachings (alcohol or tobacco companies). This alternative, ethical stance is one reason why many non-Muslims are attracted to Sharia compliant accounts.