Profit-Sharing Investment Account
حساب استثمار بالمشاركة في الأرباح
A deposit account that earns a share of the bank's profits instead of interest, with the depositor bearing investment risk.
Definition
An account, usually built on Mudarabah, in which depositors provide capital that the bank invests in Shariah-compliant assets, and returns are shared by a pre-agreed ratio rather than a fixed rate. Depositors bear losses on the invested capital except where the bank is negligent, which distinguishes PSIAs from guaranteed deposits.
Islamic banks worldwide fund much of their activity this way. In Canada, FDIC rules require insured deposits to be repayable at par, so true PSIAs are rare; halal savings products instead use trust (wadiah) or agency (wakalah) structures or pay profit from the bank's own funds.
Related Terms
Mudarabahمضاربة
A profit-sharing partnership where one party provides capital and the other provides expertise.
Wadiahوديعة
Safekeeping or custody - the basis for some Islamic checking and savings accounts.
Wakalahوكالة
An agency contract where one party appoints another to act on their behalf for a fee.
Rab al-Maalرب المال
The capital provider in a Mudarabah partnership - provides funds but not management.
Islamic Window
A Shariah-compliant division inside a conventional bank, with separate products but a shared balance sheet.
Hibahهبة
A voluntary gift with no expectation of return - used in Islamic banking as discretionary bonuses on deposits.
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Profit-Sharing Investment Account (حساب استثمار بالمشاركة في الأرباح) - A deposit account that earns a share of the bank's profits instead of interest, with the depositor bearing investment risk. An account, usually built on Mudarabah, in which depositors provide capital that the bank invests in Shariah-compliant assets, and returns are shared by a pre-agreed ratio rather than a fixed rate. Depositors bear losses on the invested capital except where the bank is negligent, which distinguishes PSIAs from guaranteed deposits.
- A deposit account that earns a share of the bank's profits instead of interest, with the depositor bearing investment risk.
- Category: Banking
- Related: Mudarabah, Wadiah, Wakalah, Rab al-Maal, Islamic Window, Hibah
- Compare related Shariah-compliant products on HalalWallet
Source: HalalWallet (halalwallet.ca)
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This page is reviewed against HalalWallet editorial standards and source documentation.
Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-10-01
Editorial Team, HalalWallet
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