What to look for when opening a savings account? Safety? Minimum balance requirement? ATM availability? Online facility? Or even profit? In Indonesia, there are types of savings including conventional and Islamic ones.
Conventional savings are most popular among Indonesians especially those who like buy products online. This type of saving generally have an interest from 0.5 to 2 percent per month. However, customers will also be charged a monthly administration. It simply because, according to conventional savings purpose, it helps keep your funds easy to access.
Hence, the concept of Islamic banking also growing in Indonesia considering the largest Muslim populations. It is marked by the increasing number of banks have introduced Islamic savings to their customers. What the exact different between those two products?
First and foremost are akad (agreement) in the beginning when customers opening a savings account. In Islamic bank akad known for mudharabah and wadi’ah. Ojk.go.id defines, akad mudharabah is an agreement between first party (bank) which provides all capital and second party (customers) as a fund debtor. While akad wadi’ah is an agreement when customers who has the money entrusted their money to the next party (bank) to be maintained.
In Islamic savings account is an investment for profit under the rules of mudharabah with an objective to provide return on the investment. In other words, if conventional savings account provide interest, Islamic ones offer a profit margin for its customers who use funds for investments.
Besides, Islamic savings account have special products including hajj savings, qurbani savings, and waqf. It also free of monthly administration for the first three months as well as small deposit for customers who use akad wadi’ah.
To sum up, conventional savings account keep money to get maximum benefits, while Islamic ones offering benefits based on akad their customers agree. Any type of savings you choose, it is equally important. When you need emergency savings for truly awful happen in the future, you can use your saving money.