UK’s first Islamic student account launched
Lloyds TSB has launched a new student account aimed at Britain’s Muslim students, aimed at helping them to manage their money without compromising their faith.
According to Islamic law (Shariah), customers cannot pay or receive interest (Riba) on their money and deposits held in accounts cannot be invested in certain industries, such as gambling or alcohol. In keeping with these principles, the new account will not pay or charge interest and customers’ deposits will be kept separately to all other funds held by the bank.
However, students who open the account will receive all the benefits of Lloyds TSB’s standard student account.
Paul Sherrin, Head of Islamic Financial Services, Lloyds TSB said:” This student account is the first to have been designed with Muslims in mind. Britain’s two million strong Muslim community is as young as it is fast growing, with more than half under the age of 25 – and of course many of these are studying.”
The student account is the latest in a series of Islamic banking products and services which Lloyds TSB is developing for the UK’s two million Muslims. It follows the launch of an Islamic current account and mortgage across the bank’s 2,000 branches in June this year.