As Muslims already know, Allah has forbade Muslims from receiving or paying interest on the money that they have either loaned to another entity or, in the case of the modern era, have deposited into a bank. Well, this is the reason why the concept of Islamic banking was initially developed. Islamic banking services are the services that are provided by Islamic banks around the world. Islamic banking is also known as non-interest banking and is a type of banking which does not entitle either the bank or the account holder to any interest whatsoever. The bank does not earn any interest on the loans that they provide (in most cases) and the account holder who deposits their savings into their bank account does not earn any interest whatsoever on the money that they have deposited.
Allah has restricted Muslims from receiving or paying interest and the Holy Prophet (PBUH), in this last sermon, told the Muslim Ummah to make sure that they do not do what Allah doesn’t want them to do. Islamic banking is the only type of banking in existence that is in accordance to Sharia, also known as the Islamic law.
What is an Islamic bank?
An Islamic bank is basically a bank that provides Islamic banking or non-interest banking services. There are more than 300 institutions which provide Islamic banking or non-interest banking services in over 51 countries. The list of countries with banks that provide non-interest banking or Islamic banking services includes the United State of America. This means that there are a number of Islamic banks in USA.
Here are top 5 Islamic banks in the US
There are many, many different banks in the United States of America that provide Islamic banking services. However, not all of these banks are the best. Some of these banks are better than others. So, here is a list of the top 5 Islamic banks in USA.
LARIBA- The American Islamic Finance House
LARIBA is one of the most famous Islamic banks in USA and that is because it is being run by a Muslim board of directors. The banking services provided by LARIBA are all in accordance to the Sharia and all of the accounts that are provided by LARIBA are Islamic banking accounts (non-interest banking accounts).
Based in Michigan, the University Bank is one of the many famous banks that provide Islamic banking or non-interest banking services in the United States of America The University Bank, even though it is run by an American Board of Directors, is in accordance with all the Islamic banking related laws included the Sharia.
Harvard Islamic Finance Program
The Harvard Islamic Finance Program, also known as the HIFP, is an Islamic banking program provided by the University of Harvard.
Guidance Financial Group
The Guidance Financial Group is also an famous financial group in the US which provides Islamic banking or non-interest banking services.
Samba is a worldwide banking service which provides Islamic banking services to a number of countries including the United States of America.
Do you know of any more banks that provide Islamic banking services in the United States?