Some Viewpoints of Islamic Banking Retail Deposit Products in Malaysia

This paper attempts to provide an understanding with respect to Islamic deposit facilities in Malaysia. Our illuminations are centered on current accounts, savings accounts and investment accounts. A brief note on negotiable Islamic certificates of deposit (NICD) is also provided. These deposit products are explained in terms of their definitions, features and return calculations. On the same note, some discrepancies between deposit facilities offered by Islamic and conventional banks are exposed. The purpose of such expositions is to provide novice readers a basic but profound explanation concerning the differences between the two categories of deposit facilities. A note on Malaysia Deposit Insurance Corporation (MDIC) is also offered. Importantly, this paper at least provides useful information to create positive understanding amongst novice readers relating to the distinct concepts of Islamic and conventional deposit facilities. JIBC August 2013, Vol. 18, No. 2 2 This paper is of importance to exemplify why the two deposit facilities are distinct. Limitations and future works in this area are provided.