Prizes for Accounts (Current/Savings/Investment)
Giving prizes for current accounts is not permissible because they are loans guaranteed by the bank, and every loan with benefit is usury. What is known as custom is similar to a stipulated condition (the Prophet, peace be upon him, forbade the lender's gift).
As for investment accounts of all types, they represent trusts rather than bank debts (the mudarib or the agent). The bank may offer prizes to account holders, subject to the following terms:
- Granting these prizes does not guarantee the mudaraba capital or any portion thereof in the event of a loss, as Shariah law prohibits the mudarib from guaranteeing the mudaraba capital.
- These prizes must be sourced from shareholders’ funds since the bank (the mudarib or agent) lacks the authority to donate from the funds of the holders of investment accounts.
- The investment deposit contract does not specify these prizes, and there is no objection to announcing them.