A current account in the UK allows you to maintain a line of credit with the issuing bank, and it even allows you to withdraw money from ATMs affiliated by the issuing bank. Current accounts from different banks have certain features which may distinguish them from current accounts of competitors.
Unique Features of Current Accounts for Muslims
Lloyds TSB is one bank which allows Muslims to maintain current accounts in line with Shariah Law, also known as Islamic Law. Shariah Law requires any Islamic account to be free from interest charged on credit or debit transactions. Thus, Lloyds TSB avoids using funds deposited by Muslims in current accounts to earn interest in its investment activities.
The reason Shariah Law forbids the charging of interest on current accounts owned by Muslims is because in the time of the Islamic prophet Mohammed, many people earned huge profits from lending out money at usurious rates. This is why the Prophet taught that it is immoral to earn interest from other people. This law covers not just current accounts but other bank accounts as well (at least at Lloyds TSB). It is often availed of by Muslims who reside in the United Kingdom.
Unique Features of Current Accounts In Other Banks
Another UK bank, First Direct, imposed an annual fee of 120 British pounds on current account holders in 2006. According to First Direct chief executive Chris Pilling, the bank imposed the annual charges because of the huge number of dormant accounts and relatively inactive accounts under the jurisdiction of the bank, which cost money to maintain. For current account holders who wish to dodge paying this hefty annual fee, they must deposit a minimum of 1,500 British pounds per month in salary into their current account, or keep the same amount in their current account as average balance for the month. If they fail to do this, they will be charged the annual fee.
Other UK banks said they would still maintain free current accounts after the First Direct policy came out, though they did not rule out the possibility of charging for current accounts in the future.
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