{"id":64093,"date":"2024-07-04T17:55:09","date_gmt":"2024-07-04T09:55:09","guid":{"rendered":"https:\/\/www.imoney.my\/articles\/?p=64093"},"modified":"2024-07-05T10:00:58","modified_gmt":"2024-07-05T02:00:58","slug":"best-islamic-fixed-deposit","status":"publish","type":"post","link":"https:\/\/www.imoney.my\/articles\/best-islamic-fixed-deposit","title":{"rendered":"Best Islamic Fixed Deposits In Malaysia"},"content":{"rendered":"

No matter the economic climate, it\u2019s always good to find a way to invest your money. And if you\u2019re looking for a relatively easy and risk-free investment, a fixed deposit scheme is one of the best options you have.<\/p>\n

But if you are looking for investment products that comply with Islamic law, conventional fixed deposits might not be a viable option for you. Shariah-compliant financial products demand the avoidance of riba (usury) and gharar (ambiguity or deception). Which is why you might want to look into Islamic fixed deposits instead.<\/p>\n

Now if you\u2019re wondering how to find out more about these Islamic fixed deposits just read on. We\u2019ve curated 5 of the best Islamic fixed deposits (also referred to as term deposits) in Malaysia for your review.<\/p>\n

<\/span>What is a fixed deposit?<\/span><\/h2>\n

Before we get into it, first let\u2019s review what a fixed deposit is.<\/p>\n

According to our article on fixed deposit<\/a>, a fixed deposit or \u2018FD\u2019, is a type of bank account that promises the investor a fixed rate of interest. In return, the investor agrees not to withdraw or access their funds for a fixed period of time.<\/p>\n

<\/span>So what is the difference between Islamic FDs and conventional FDs?<\/span><\/h2>\n

The difference lies in the returns given to the investors. In conventional fixed deposits, the profits received by the depositors are referred to as interest.<\/p>\n

Think of conventional FDs as you lending your money to the bank. When the term ends, you get your money back along with interest.<\/p>\n

But Islamic FDs don\u2019t work like that, due to the fact that interest or riba as it\u2019s called in Islam, is prohibited by Islamic law.<\/p>\n

So instead, in Islamic FDs, the money you deposited will be used to invest in Sharia-compliant ventures. The profit from these investments will then be shared with you in a ratio that is predetermined between you and the bank.<\/p>\n

Due to this reason, usually Islamic FDs offer a variable rate of return instead of a fixed rate like how conventional FDs do.<\/p>\n

So, what are the best Islamic FDs in the market right now? Let\u2019s get into it.<\/p>\n

<\/span>1) RHB Commodity Murabahah Deposit-i<\/span><\/h2>\n

The first one is RHB Bank\u2019s Islamic FD offering, the RHB Commodity Murabahah Deposit-i.<\/p>\n

The RHB Commodity Murabahah Deposit-i offers a variable rate of return, depending on the agreed term of deposit.<\/p>\n

Key Features<\/h4>\n

Profit rate table<\/h4>\n\n\n\n\n\t\n\n\t\n\t\n\t\n\t\n\t\n\t\n\t
Tenure<\/strong><\/th>Profit rate<\/th>\n<\/tr>\n<\/thead>\n
1 month<\/td>2.40%<\/td>\n<\/tr>\n
2 months<\/td>2.45%<\/td>\n<\/tr>\n
3-5 months<\/td>2.55%<\/td>\n<\/tr>\n
6 months<\/td>2.60%<\/td>\n<\/tr>\n
7-11 months<\/td>2.60%<\/td>\n<\/tr>\n
12 months<\/td>2.60%<\/td>\n<\/tr>\n
>12 months<\/td>Negotiable<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n

Eligibility<\/h4>\n