Lloyds TSB to launch Islamic current account

14 February 2005
Lloyds TSB has announced that it is to launch a new current account, the first of its kind to cater specifically for the needs of the two million British Muslims.

The bank has consulted a board of Islamic scholars to ensure that the account is fully compliant with Islamic 'sharia' law.

This law forbids the payment and receipt of interest, called 'riba', so the account will offer no credit interest and have no overdraft facility.

It will, however, provide a debit card and will not charge a fee or require a minimum balance.

It also guarantees that all money deposited will be held by Lloyds TSB in accordance with Islamic law.

Lloyds TSB claims that this is the first element in a range of dedicated Islamic financial services offered to Muslims who until now have used conventional current accounts or chosen to opt out of traditional banking services.

"The Muslim community is one of the fastest growing in the UK and is very much part of the fabric of British life," said Gordon Rankin, current accounts director at Lloyds TSB.

"Our research shows that over three quarters of British Muslims want banking services that fit with their faith, and that's exactly what we aim to provide, beginning with our new current account."

The account is being piloted in selected branches across the UK, including central London, Birmingham and Luton.

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