Sharia Savings – Methods, Types, Benefits & Savings System

Sharia savings are interest-free savings according to Islamic law. Check the difference between sharia and conventional savings here.

Sharia savings are a type of savings product that applies Islamic law in it. Where, the sharia system does not apply interest to its customers but the distribution of results or what is called a ratio. So, what exactly are the goals and benefits of Islamic savings?

Yup, this type of savings is different from other types of savings. In addition to using the ratio method, the difference between sharia and conventional savings also lies in the admin fee which is not charged to sharia savings customers.

For more detailed information, let’s read the following review! OCBC NISP will invite you to delve deeper into sharia savings and related matters.

Definition Of Sharia Savings

The definition of Sharia Savings is a type of savings that is carried out based on a Sharia contract in Islamic law. This type of savings is called Sharia because all transactions and contracts are based on Islamic rules.

The types of Shariah contracts used include wadiah contracts, mudharabah, and other contracts that are in accordance with Shariah principles. So far these savings do not recognize the existence of savings interest, but are replaced by a system of revenue sharing or ratios.

The ratio is the principle of profit sharing in sharia savings where the bank will manage the funds collected from customers evenly. And profits from the management of bank funds will be returned to customers.

Profit sharing is carried out on a ratio basis (profit sharing) in accordance with the agreement that was agreed at the beginning. Although profit sharing still depends on the amount and duration of the deposited money.

No need to worry, Islamic financial products are supervised by the National Sharia Council and have been inaugurated in Fatwa Number 02/DSN-MUI/IV/2000. So that Islamic financial products are legal to use.

Please read Sharia Credit Card Vs Conventional Credit Card, Their Differences

Difference Between Sharia And Conventional Savings

The difference between conventional and sharia savings lies in the transaction agreement between the customer and the bank. If conventional savings only use agreements in general, sharia savings use Sharia contracts that adhere to the principles of fiqh muamalah.

The principle of fiqh muamalah prioritizes a sense of justice and transparency in conducting transactions.

Another difference is seen in the transaction system used. Islamic fund products do not recognize interest or usury as in conventional banks, but use the principle of ratio or profit sharing.

In addition, the bank will manage customer funds only for Islamic-based interests. Customer funds will be invested in business fields that meet sharia principles and are halal according to Islamic law.

Why Should You Switch To Sharia Savings?

The reason you, especially as a Muslim, is strongly recommended to use a sharia-based savings service, is because it is implemented according to Islamic law. Of course this can guarantee your safety in saving or using bank services.

In addition, the application of the interest system in conventional banks is seen as doubtful or the law of halal is not guaranteed. Because in the view of sharia law, conventional bank interest is considered usury. While usury itself is prohibited in Islamic religious rules.

So that you are comfortable in making transactions, it would be nice to use sharia savings. So you can still use bank products and services with clear laws according to Islamic law.

Also read about Get To Know Sharia Credit Cards And Banks That Issue Them

The Purpose And Benefits Of Sharia Savings

The purpose of holding sharia savings is in addition to following Islamic religious rules, the principle of profit sharing in a sharia contract will mutually benefit the bank and the customer.

Profit sharing calculation will be calculated based on the income earned by the bank. Therefore, if the bank’s income is higher, the ratio received by customers will also be greater.

However, as a consequence, when the income from the ratio decreases, the profits received by customers also decrease. This is certainly different from the conventional bank interest system, the ups and downs are determined by market and bank conditions.

3 Types Of Sharia Savings

  1. Types of Sharia Futures SavingsIt is a type of sharia savings that adheres to the principles of wadiah contract and mudharabah muthlaqah. The principle of wadiah contract emphasizes on pure deposits that must be protected and returned to the customer based on the wishes of the owner.As for the Mudharabah Muthlaqah principle, it is agreed that the Bank will not be limited by the customer when managing the customer’s finances. So that the bank has the right to freedom to establish contracts in the financial management of customers.
  2. Types of Ordinary Sharia SavingsThis type of savings is like an ordinary savings product but is adjusted to the principles of Islamic law from various types of sharia contracts. Usually withdrawals can only be made based on certain agreed terms. As a result, savings with the usual sharia system cannot be withdrawn using demand deposits, checks, or other withdrawal tools.
  3. Types of Shariah Hajj SavingsThis type of savings is certainly intended for customers who have plans to carry out the pilgrimage to the Holy Land.Based on wadiah and mudharabah muthlaqah contracts where customers deposit savings with a fixed nominal for a certain period of time. The savings collected can later be used for the cost of performing the pilgrimage for customers.

Sharia Savings System

The sharia savings system will follow the basic contract according to Islamic law. Check out the explanation of the various sharia contracts used below:

  1. Akad WadiahIs a contract between the bank and the customer who entrusts the money with the aim of maintaining the safety, security, and integrity of goods or money. So no interest is allowed.
  2. Mudharabah contractIs a cooperation agreement in which the bank pays attention to Islamic law in managing customer funds. Banks must invest customer funds in products or business sectors that do not violate Islamic law.
  3. Akad MusyarakahA contract of cooperation between two parties in a particular business in which each party provides its own portion of funds.
  4. Murabahah AgreementA financing contract for an item in which the buyer pays a higher purchase price as an agreed profit.
  5. Akad SalamTransaction contract in which the order and payment are made in advance with agreed terms.
  6. Akad Istisna ‘Transaction contract by ordering the manufacture of certain goods according to the agreement.
  7. Akad IjarahA contract that transfers the usufructuary rights or benefits of an item or service based on a lease transaction without any transfer of ownership of the item itself.
  8. Akad Ijarah Muntahiyah Bit TamlikA contract that transfers the right to use an item or service is based on a rental transaction followed by a transfer of ownership of the goods.
  9. Akad QardhA loan agreement in which the customer is required to return the borrowed funds at a certain time.

How To Calculate Sharia Savings Profit Sharing

It should be noted that only savings products with investment in the mudharabah contract will receive profit sharing. Meanwhile, sharia savings with a deposit scheme (wadiah) will be given benefits in the form of bonuses.

How to calculate profit sharing begins by measuring the level of investment income. Estimated investment income is calculated by the bank by looking at the field conditions of the sector that is the investment destination.

The calculation results are obtained through the amount of investment income in the form of an equivalent rate for customers and the bank. However, there is an allocation of investment income to cover operational costs.

This total sum will be calculated in the profit sharing for the bank and the customer.

Conditions For Opening Shariah Savings

Opening a sharia account can be done offline by coming to the bank or online using a cellphone. These are the conditions that must be met in opening a sharia savings account.

Terms of Opening an Offline Sharia SavingsIn general, the requirements for opening a savings account are not much different from conventional banks in general. The following are some of the requirements that must be met, including:

  • Bring your Identity Card (KTP/SIM/Passport).
  • Making an initial deposit
  • Fill out the registration form provided by the bank

Requirements for Opening an Online Sharia Savings AccountWhile the requirements for opening online sharia savings can be done using a mobile banking application. Check out the requirements:

  • Download the bank’s mobile banking application.
  • Scan a photo of your Identity Card (KTP/SIM/Passport).
  • Deposit money to open an account.
  • Fill in the registration form that appears on registration in mobile banking.

That’s complete information about sharia savings that you should know. Sharia deposits are different from other types of deposits. Where this product does not use an interest system but a ratio or profit sharing.

If interested, you can open a sharia savings account at the nearest OCBC NISP branch. OCBC NISP offers sharia-compliant savings in accordance with wadiah contracts. So what are you waiting for? Let’s register now!


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