Islamic Banking.

[Tuushi]

Have any of u used one in North America? esp. in Canada.

I think they would be handy to have a tax free saving account in one.

[hydrogen]

You do know, with non-Islamic saving accounts you get more money from the bank itself? You don't get taxed.

What the Islamic bank does is not give you any money from interest it's amassed from using your saved money.

[Tuushi]

The idea is to avoid interest that the traditional banks give monthly/yearly.

I believe that is for every registered bank.U have a max amount u can save each year free of tax.

[Alphanumeric]

There's no limit? That doesn't make sense. I think I'll remember this when I'm no longer broke.

[Tuushi]

I said there is a max that u can contribute each year.

Like it started 09.If u havent started saving,u still are entitled the amounts of those missed years.Now,u have a window of like 25 k ish max for those years.

[Alphanumeric]

You can put in 5500/year for a TFSA. I thought you meant that an Islamic bank would be better for a savings account. Why? If there's still the same limit, what difference would it make? All you have to do is request that no interest be accumulated in your account. Isn't that just one form?

[Tuushi]

I see what u mean.

In a non islamic bank,there is interest on all ur savings.There is no such thing as interest free saving account.

Unless,such accounts exist in banks i havent asked.

[Alphanumeric]

Ah, I see. I guess then that would be the best option. I assumed all you had to do was request no interest.

I remember RBC talking about entering into Shariah finance years ago. Not sure where they're at with it now.

[Tuushi]

I havent looked into Rbc yet. So far asked TD,Scotia and CIBC and gave up.

Wanted to ask around how Muslims are dealing with this after the disgrace of UM financials.

[Alphanumeric]

The whole mortgage deal that fell apart? Didn't know much about. I'm always weary about anyone who claims to be following Islamic finance, especially when it comes to buying property. Just doesn't seem to make any sense here.

Hope you get an answer. Would love to know more myself.

[Tuushi]

Yeah.That whole mortgage limbo.I wonder if they still are in business.

Ask around as well pls.

I will report back.I also wondered if the financial institute had to be Canadian for the account to qualify.

[samatar133]

They tax your saving in Canada?

[Tuushi]

Waryaahe,why u edit all that?

U get taxed on ur total income and anything u save is included in that lakiin u get a break to a certain level.

[samatar133]

dee I either misread your question or you too edited your initial question. I bet you wrote interest free saving at first not tax free saving which is completely different thing. Anyway good for you, you must have a lot Lacag to look for savings, ma hagbadadii ayaa kuu timi talow

[Basra-]

Banking in Islam is an Oxymoron-aint it? Interest----Haraam. Tax----Haraam.