Getting to Know Sharia Deposits and Their Benefits

  The desire to invest can be hampered because it considers the halal element or not the way of investment made by the bank. You do not need to hesitate to invest because there are Sharia investment products to choose from.

Islamic banking present in the country has various offers of halal savings and investment products that can be selected according to financial needs. Examples of Islamic banking products offered by banks ranging from Islamic savings, Islamic mortgages, to Islamic deposits.

Getting to Know Sharia Deposits and Their Benefits

As you know, deposits are one of the safest, low risk investment instruments. Of course, sharia-based deposits can be an attractive option for those who want to invest without having to worry about riba.

What is Sharia deposit?

Understanding of Islamic deposits is a banking product that falls into the category of term deposit products managed using the Sharia system, which is based on Islamic sharia where principle prioritizes a sense of fairness and transparency in transacting.

As for the sharia principle, the money you place in Sharia deposits will not get interest and there is no term interest in Shariah products. Because flowers are forbidden according to Islam. However, your Sharia deposit will earn a profit share (ratio). 

Ratio (Revenue Share) of Sharia Deposits

How to determine the revenue share commonly used in Sharia term deposits in general is as follows:

(Nominal deposit: Nominal all deposits) x Percentage share of revenue x Bank profit in the month

In Sharia investment, there is a mudharabah agreement. Akad mudharabah is a way of calculating profits obtained by customers that are done by way of ratio or profit sharing.

In addition, the customer acts as shahibul maal or the owner of funds and banks as mudharib or fund manager.

As an illustration, when you will open islamic deposits, the bank will ask you to fill out an agreement, which is an agreement between the customer and the bank about the funds you put in the bank.

In the contract is regulated about the large profit sharing and selection of investment instruments that the bank will do with your money.

Generally, the ratio offered by banks is 60:40 for customers and banks. So, the smarter the bank spins your money to make a profit, then you will make a profit that will be even bigger as well.

In addition, there are 2 options that can be chosen in choosing investment instruments, namely mutlaqah and muqayyadah.

The meaning of mutlaqah is that the customer let the bank determine the investment instrument to be done to rotate money, while muqayyadah is the customer who determines the investment instrument to be carried out by the bank.

Benefits of Sharia Deposits

After understanding the meaning of Islamic deposits, now is the time you also know the benefits.

As you know that investing is important and aims well to realize your financial goals in the future.

Therefore, it is important for you to know the benefits as well as the advantages of Islamic deposits.

1. Secured Deposit Funds

This has been regulated by the Sharia Supervisory Board (DPS), like deposits in general, your funds will be guaranteed by the Deposit Guarantee Agency (LPS).

The safety of your money will be guaranteed by LPS in the event of bank bankruptcy. So you won't lose that money. The amount of deposit funds guaranteed by LPS is a maximum of Rp2 billion.

Well, for Islamic deposits themselves the level of security can be higher because the percentage of profit sharing has been determined from the beginning by the customer and the bank, thus closing the possibility of fraud from one of the parties. 

2. Profit Count According to Your Wishes

How to calculate the profit of Islamic deposits is to use a ratio system (profit sharing). This is clearly different from conventional deposits, profits are calculated based on the amount of interest rates that apply.

As for islamic deposits, the rewards are based on mudharabah where income from Islamic deposits is not fixed, but fluctuates according to the level of income and performance of the Islamic bank.

However, you do not need to worry because this share of results you can set yourself through the account you make together with the bank at the beginning of deposit registration. So the calculations can be clearer and in accordance with what you want.

3. The Process Must Be Halal

You do not have to worry about how the bank rotates your money and halal or not the profit money because as the name implies, the bank will rotate your deposit funds with Sharia law.

Therefore, idolatry is the main thing in rotating customer money in Islamic deposit products so it can be ascertained that the bank will process your funds in sectors that do not conflict with Islam in a halal way. 

4. Can Be Used as a Financing Guarantee

Islamic deposits can be used as collateral financing. Like a letter of hope, Sharia deposits can also be used as collateral when you need funds for the financing of something.

To find out what types of financing can be guaranteed with Islamic deposits, you should ask directly to the bank because each bank has different terms and conditions about this.

5. Sharia Deposits, Emergency Fund Deposit Investment Options

The characteristic of deposits in general is a safe, low-risk and suitable investment instrument chosen as a short-term emergency fund deposit.

The reason, Sharia deposits can be disbursed in accordance with the tenor option of 1 month, 3 months, 6 months, 12 months and 24 months.

You can also extend the deposit period with an automatic roll over or ARO system. This feature will give you an automatic tenor extension before maturity.  

But, understand yes that disbursement of funds in Islamic deposits can not be done at any time such as savings accounts. You have to wait after the disbursement period to avoid penalties.

For the cost of sharia deposit penalties have been agreed nominally at the beginning of the agreement and are generally mentioned as administrative costs. 

Sharia Deposit Early Deposit

For capital or investment deposits in Islamic deposits also vary, some banks offer Sharia deposit products with initial deposits ranging from Rp1 million, Rp8 million to Rp10 million.

The way and terms of opening a Sharia deposit account are easy. You can make Islamic deposits online, namely through the Islamic bank banking intenet you choose or offline, namely coming to the nearest Islamic bank branch office. 

It's Time for Sharia Investment

Making a lot of money is certainly not a difficult thing if done in the wrong way or not halal. However, remember from the money that is not halal, the happiness that you will feel will decrease or even not make you happy.

As with investing, it would be better if you know for sure that the investment you make is halal. How? Use Islamic banking products such as Islamic deposits. Your finances are growing in blessing.