Yes, a Meezan savings account, specifically one offering "Halal Profit," is designed to be Shariah-compliant.
Meezan Bank is known for its Islamic banking practices. The core principle of Islamic banking is to avoid riba (interest), which is prohibited in Islam. Therefore, Meezan savings accounts operate on principles that are in line with Shariah law.
Here's a breakdown:
- Profit-Sharing, Not Interest: Instead of earning interest, your savings are invested in Shariah-compliant ventures. The profit generated from these investments is then shared between the bank and the account holder, according to a pre-agreed ratio. This profit sharing is known as Mudarabah.
- Shariah Compliance: Meezan Bank has a dedicated Shariah Supervisory Board that oversees all its products and operations to ensure they adhere to Islamic principles. This board provides guidance and approval for all banking activities, including savings accounts.
- Ethical Investments: The funds in a Meezan savings account are typically invested in businesses and projects that align with Islamic values. This means avoiding industries like alcohol, gambling, and weapons manufacturing.
- Example: The Meezan Senior Citizen Account highlights how Meezan offers higher, Shariah-compliant returns, demonstrating their commitment to providing halal options for savings.
In conclusion, Meezan Bank offers savings accounts designed to be compliant with Shariah principles, offering profit-sharing based on ethical investments instead of interest.
