Choosing Shari'ah or Conventional Bank

Indonesia
June 15, 2010 9:06pm CST
Banks are everywhere now. From a small bank to bank with branches almost a giant in the world. Since I entered university, I really needed an ATM. Whether to receive or transfer money, save money. Especially since I'm blogging, I need an ATM to accept payments online business. So, I open a bank account. There are two kinds of banks, in terms of the concept in general. There are conventional banks, some banks shari'ah. Now there shariah banks everywhere, especially many of the conventional banks to open bank line of shari'ah, Prudential bank. In the face of this earth so many have opened bank shari'ah, let alone Asaiah country, Indonesia. Which was the largest Muslim population in the world. I am a Muslim, would choose a bank syari; at. Many of its advantages, for example, only about sharing a competitive, transparent, draw money at ATMs for free, pay only the transfer of money too little, the cost per month with a very low cost, and certainly according to the Islamic Shari'a. Indeed, not a few Muslims who choose konvensioanal bank. Now, you already have a bank account. You chose a conventional bank or shari'ah. Give argumant, your experience, even if necessary postulate of religion, why would you choose konvensioanal bank or shari'ah?
2 people like this
11 responses
@asep988 (92)
• Indonesia
16 Jun 10
For me, I've used both conventional and shari'ah account in Indonesia (nice to meet you as we are Indonesian). Anyway, I think shari'ah is better for me. As a moslem, I don't have to worried to received money that I shouldn't have. In other case, shari'ah gave us a profit sharing that we can take even a little. So what do you think?
1 person likes this
@indahfth (11173)
• Indonesia
16 Jun 10
I have accounts in Syariah and conventional banks. But I am actually more in keeping with Islamic banks. Because Syariah banks use the system mudharabah. mudharabah system, the Islamic bank is not required to pay interest to customers in the bank as riba (conventional banks). syariah bank share results in accordance with the level of income and gains earned on revenue sharing as agreed. mudharabah system is the opposite of interest system. If the system mudharabah get a blessing, while the system of interest received from God's curse.
1 person likes this
@dawnald (84155)
• Shingle Springs, California
21 Jun 10
They only have conventional banks here. But I wouldn't choose a bank on the basis of religion, I'd choose one based on good service and low fees.
@cherrc (666)
• Philippines
16 Jun 10
hi there kandangtips! this is definitely a new learning for me. i'm in a conventional bank which implements rules and regulations according to banking laws being enforced in the country. in a way, basing on your statement regarding sharia bank, it is also nice. i think the best way to deal with it is to let the depositors choose the bank they feel convenient and somehow not compromising what to believe. thanks for posting this topic. i might share this with friends over a cup of coffee. :)
@adhyz82 (36289)
• Indonesia
16 Jun 10
kandang tips, this is familiar name in blogs..are you bloggers? lol..iam moslem too, maybe we are same, indonesian too..roght? unfortunatelly, untill now, i dont have any account in syariah bank but someday i want open it..pray for me
@nophie (2338)
• Indonesia
16 Jun 10
hello kandangtips, well i don't know much the different of syariah and conventional bank. but i use conventional bank to save my money, and i use the syariah program for the my health insurance. anyway, your name is very familiar for me. you have a blog with the same name, right?
@tomitomi (5441)
• Singapore
16 Jun 10
Hi KANdaNGTips! Where we used to live in Indonesia, the bank officer did ask me whether our accounts be placed in shari'ah or in a conventional banking. Although I'd heard a lot about the two I'd never actually prepared myself to be is such a position. So I was dumbfounded. And in my haste I said conventional banking. We do have accounts in Indonesia although we live abroad for now. May I just ask you what are the differences between shari'ah and conventional banking. And in your opinion what works best for you and why? I thank you so much.
@momof3kids (1903)
• Singapore
16 Jun 10
I myself have not used a syariah bank but with your post, I have learnt something and will start researching where I can find a syariah bank in my own country. Thanks I suggest you use the syariah bank. Eventhough I have not got the experience, from what I have seen my late mother did, it is quite troublesome to 'disinclude' the interest from a conventional bank. For me being quite a greedy person, I hope I can do it in future!!
• Indonesia
16 Jun 10
Actually, I want to have a saving account in a Sharia Bank. But for now, I only have an account in a conventional bank. Just like you, I am also a muslim who should stick to our religion's guidance in all aspects of life, including in Banking. I agree with you that having an account in Sharia bank has many benefits and the most important thing is that it is free from interest which is forbidden in our religion. So, I hope someday I can switch my saving account to a Sharia Bank.
@icecubic (1851)
• Indonesia
16 Jun 10
I have an account on conventional bank. I guess sharia bank today is not the real sharia if they weren't used gold currency/dinar. Because so far i know the sharia bank has to use dinars. Have a nice day.
@Hatley (163930)
• Garden Grove, California
16 Jun 10
hi kandangtips I am an American from the US in California. I chose the Bank of America which I guess from what you said is a conventional bank. Since I do not know what exactly a Shari'ah bank is I do not know what would be comparable here in the US. We have conventional banks and Savings and Loans banks too. Our religion does not translate to our banks here. I can now see that Shari'ah banks are related to Muslim religion and that is interesting. I keep learning here each day on mylot.