2

As we all know that Islamic Banking avoid interests.

Then, what is the technique of adding profits/returns to short/long-term deposits or any deposit?

  • Who said there is any? There's no interest, period. If the bank wants to give something in return it will be a gift, not a promised interest. – littleadv Apr 1 '12 at 5:02
5

They do "Hibah" ("gift"): Hibah on Wikipedia

Basically, the bank rewards you, with a "gift", for the profits that it makes from your deposits but without specifying those details in contract.

So, unlike a non-islamic deposit you can't have any garantee about when or how much the reward will be.

In that way it's more like a dividend.

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