Bank that pays NO INTEREST???

[beatbox]

is there a bank with an account that a student can use;


NO SYSTEM FEES
atleast 20 debit transaction
NO Interest

the closest one i found was with BMO with their student discount
it comes with 30 transaction but only thorugh the atm no teller assisted and there is interest


can i ask them to remove the interest option

thanks

[recordman]

Why don't you like interest? Check out President's Choice Financial. No teller service though, but I doubt you'd need it. I haven't used a teller for banking for years.

[pitz]

I suspect he might be eschewing interest for religious reasons, for example, he is a Muslim, and the rules of Islamic banking forbid interest.

[p51dray]

Doesn't the BMO chequeing account gives no interest? Or at least no interest unless you put in a ridiculous amount? You can spread your money over multiple chequeing accounts if that ever happens.

[recordman]

That's awesome. I need to find some banks run by Muslims for a mortgage.

I suspect he might be eschewing interest for religious reasons, for example, he is a Muslim, and the rules of Islamic banking forbid interest.

[letmesearch]

That's awesome. I need to find some banks run by Muslims for a mortgage.

ROFL :lol:

[Dibble]

That's awesome. I need to find some banks run by Muslims for a mortgage.

Hahaha...

Yeah, I don't know if it works the other way though.
I mean, I doubt muslims don't buy their houses outright here without getting a mortgage... do they?
Because if they do, they're all mighty rich or they must have some amazing negotiating power with the banks! :cheesygri

[maniacshopper]

what do you mean no interest? as in no interest earned or interest charges? If you are looking for no interest charges, good luck. Get a credit card that offers no interest for the first 6 months, then interest kicks in.

Student banking plans are available thru out the big banks. PC has the best plan for paying bills and atm uses as long as it's on a CIBC atm. You will earn interest at PC. Big banks pay squat in interest.

[gman]

Hahaha...

Yeah, I don't know if it works the other way though.
I mean, I doubt muslims don't buy their houses outright here without getting a mortgage... do they?
Because if they do, they're all mighty rich or they must have some amazing negotiating power with the banks! :cheesygri

Yes, some of them do buy their houses here outright without mortgage because of the religion. My understanding is they usually do it these ways (correct me if I am wrong):

1. a few family combine their money to buy a house.
2. there is a special "mortgage" (but not exactly a mortgage and not from a regular bank) to serve that purpose.
http://www.bbc.co.uk/religion/religions/islam/features/banking/

3. they are rich.

[BBQPorkBun]

is there a bank with an account that a student can use;


NO SYSTEM FEES
atleast 20 debit transaction
NO Interest

the closest one i found was with BMO with their student discount
it comes with 30 transaction but only thorugh the atm no teller assisted and there is interest


can i ask them to remove the interest option

thanks

chequing accounts pay virtually no int anyways

[rabcede]

I don't know if its a special account or you just have to make arrangements with the person who opens you're account for you, but I do know that getting an account with absolutely no interest is possible on religious grounds.

all you have to do is talk to them when you open your account. banks do offer this specific service to its clientele. (i'm not even sure if all banks do this, but i know that TDCT does for sure - but i don't why other banks wouldn't)

[B40]

The better way to do it is to tell them to transfer the interest to a seperate account, then every once in awhile you can donate that money to charity.. don't let that interest go to waste...

(Or is this still against your religion? I know one of my friends does this)

[beatbox]

yes im muslim so therefore against my religon to give and take interest


yeah B40 thats sounds like an idea will chekc up on with my bank
i just usually approximat the interest that gets paid by looking at my pass book and giving it to charity

how ever the bank im with now (scotia) i can no longer use the "getting there account" as im over 18 now but the next closest option i have is paying them a system fee inorder for that account to meet my banking needs

the BMO is pretty much the one im looking for but once i go to their office to inquire about the interest ill switch to them

if any one knows of a for sure bank plese post it

thansk

[alysomji]

That's awesome. I need to find some banks run by Muslims for a mortgage.

In Toronto, a lot of Muslims use this to buy their house:

Islamic Co-operative Housing Corporation
http://www.isnacanada.com/ichc.htm

Many other cities in North America and Europe have organizations such as these to accomodate Muslim home buyers.

Usually, it is an Islamic bank which provides non-interest-based mortgages to Muslim home buyers. As of yet there isn't one in Canada (at least one that is completely trusted by the Muslim community), however.

[beatbox]

actaully there is
UM financial http://www.umfinancial.com/

[tkyoshi]

yes im muslim so therefore against my religon to give and take interest


yeah B40 thats sounds like an idea will chekc up on with my bank
i just usually approximat the interest that gets paid by looking at my pass book and giving it to charity

how ever the bank im with now (scotia) i can no longer use the "getting there account" as im over 18 now but the next closest option i have is paying them a system fee inorder for that account to meet my banking needs

the BMO is pretty much the one im looking for but once i go to their office to inquire about the interest ill switch to them

if any one knows of a for sure bank plese post it

thansk

Are you a student? If you are then BMO's Plus plan is free for you until you are 25. You get 30 Transactions and no minimum balance.

You can choose No Interest Chequing (Standard account) which would fit you perfectly.

[mcewen]

So does that mean you aren't allowed to earn anything other than employment income? IE -is it against your religion to invest in the market for your own future?

[st7860]

is there a bank with an account that a student can use;


NO SYSTEM FEES
atleast 20 debit transaction
NO Interest

the closest one i found was with BMO with their student discount
it comes with 30 transaction but only thorugh the atm no teller assisted and there is interest


can i ask them to remove the interest option

thanks

if you have $1,000 steadily in your account at all times, TD's basic checking account offers a set number of branch/ATM transactions and pays absolutely no interest at all.

[M@rk]

is there a bank with an account that a student can use;


NO SYSTEM FEES
atleast 20 debit transaction
NO Interest

the closest one i found was with BMO with their student discount
it comes with 30 transaction but only thorugh the atm no teller assisted and there is interest


can i ask them to remove the interest option

thanks

I'm actually using the BMO with student discount and have never gotten a single penny of interest (that's why I never keep any money in there). In fact, the banker even told me so when I opened the account. And you can always make deposits using the tellers for free, just not withdrawls.

[tkyoshi]

I'm actually using the BMO with student discount and have never gotten a single penny of interest (that's why I never keep any money in there). In fact, the banker even told me so when I opened the account. And you can always make deposits using the tellers for free, just not withdrawls.

Yup, the standard account is no interest. They do have an Interest Chequing account. The reason it's not so popular is because there is no minimum balance you can have to waive the fees. Though the student discount should waive the fees on this account.

[pitz]

So does that mean you aren't allowed to earn anything other than employment income? IE -is it against your religion to invest in the market for your own future?

I'm no expert in Shariah law, or Islamic banking, but 'investing' is quite different from receiving 'interest'. "Investing" typically entails purchasing the equity of a business, from which profits are derived, while 'lending/borrowing' involve debt obligations. Dividends received from stocks represent pro rata distributions of corporate profits, and *not* interest per se. Some Muslims invest in gold and other commodities as stores of value, and those don't pay interest either.

I know an adherant to Islamic banking who uses leverage in his stock portfolio. He isn't allowed, per the laws of Islam, to borrow money from his broker as many people do when they leverage their portfolios. But he can use derivative instruments such as options and futures to create leverage without the explicit crediting or payment of interest.

So in other words, for Muslims who follow Shariah law:

Stocks, Options, Futures, zero-coupon bonds, commodities = okay
coupon Bonds, Loans, Mortgages, credit, savings accounts = not okay

Historically stocks, options, and futures have been better investments than bonds, loans, mortgages, and savings accounts, so the investing Muslim is not exactly being deprived of much by eschewing the explicit payment or receipt of interest as an investor.

[pitz]

...and ironically, the best product probably available to serve the original posters' needs is a Student Line of Credit from his favourite bank.

Keep a positive balance on the line of credit, and not a penny of interest will ever be credited, nor deducted. Plus no service charges as well.

[BadDrafter]

Use a line of credit, no interest no fees either.

[mcewen]

Sooner or later the banks will find a way to create accounts which award and/or charge interest but will find a way to creatively disquise it as something different.

"take this mortgage, we don't charge interest, but we do charge a declining service fee based on the principal outstanding, current economic conditions, and length of time it will be to pay it back...."

"need a bank account, store your money here and we will award you emeralds depending on the amount of money you deposit, the length of time you lend us your money, and current economic conditions.... when you close your account, we will buy back your emeralds. "

[D-Sisive]

2. there is a special "mortgage" (but not exactly a mortgage and not from a regular bank) to serve that purpose.
http://www.bbc.co.uk/religion/religions/islam/features/banking/


isn't that just a loophole to the whole sharia thing

they are still paying interest, albeit it being called increased rent....its like saying i dont eat pork, but i eat bacon...same stuff, different name...

but i learned something new now, muslims arent allowed to recieve/give interest......interesting......

[st7860]

not really.

there's Turkey bacon, didn't you know?

[D-Sisive]

not really.

there's Turkey bacon, didn't you know?

you got me there lol

[gman]

isn't that just a loophole to the whole sharia thing

they are still paying interest, albeit it being called increased rent....its like saying i dont eat pork, but i eat bacon...same stuff, different name...

but i learned something new now, muslims arent allowed to recieve/give interest......interesting......

I don't consider that as a "loophole". I consider that as their way to buy a house. There is no right or wrong or loophole. It is just something different.

It is like lease to own with $0 buy out option in the end of the lease (like buying a computer). Technically, there is no interest in the lease although the one who provides the lease uses interest rate to calculate the lease rate.

[D-Sisive]

a loophole to me is a loophole...thats just my thinking though

just like how those installment payments places offer, but charge an upfront admin fee but you know it is interest paid upfront first....

all technicality

[gman]

a loophole to me is a loophole...thats just my thinking though

just like how those installment payments places offer, but charge an upfront admin fee but you know it is interest paid upfront first....

all technicality

Actually, I don't consider that as interest but a rip off "admin fee". For example, if I decide to pay them off the next month, I will not get a cent refund of that fee.

[st7860]

you got me there lol

Yes. there is. its suitable for people who are Muslims and/or just don't like pork. problem is, Turkeys cost a lot more than pigs, and thus the bacon is expensive too.

http://www.google.ca/search?hl=en&q=turkey+bacon&meta=

[alysomji]

but i learned something new now, muslims arent allowed to recieve/give interest......interesting......

Same with Jews (Orthodox ones, at least) - but only in their dealings with fellow Jews.

More info on usury:

http://en.wikipedia.org/wiki/Usury