Lloyds TSB launches UK's first ever Islamic student account

24 August 2006
Following the successful and well-publicised launch by several banks of Islamic bank accounts, Lloyds TSB is the first UK institution to transfer the principles into the student account market.

Muslims studying in the UK frequently find themselves financially disadvantaged due to the restrictions their faith puts on their ability to open and operate a traditional current account.

Shariah law dictates that followers of Islam cannot pay or receive interest on their money, nor can deposits put into their accounts be invested in certain 'non-ethical' industries, such as gambling, alcohol, or weapons manufacturing.

Students opening the new Lloyds TSB Islamic account can benefit from all the perks offered as part of the standard student account, including an interest free overdraft of £1,500 for three years, a complimentary iPod Shuffle and a year's free membership with the Youth Hostel Association.

"This student account is the first to have been designed with Muslims in mind," said Paul Sherrin, Lloyds TSB's head of Islamic financial services.

"Britain's two million-strong Muslim community is as young as it is fast-growing, with more than half under the age of 25 - and of course many of these are studying.

"By providing a real alternative that meets their financial and religious needs, we've made it possible for them to enjoy campus life without compromising their faith."

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