Wadiah
وديعة
Pronunciation: wah-DEE-ah
Safekeeping or custody — the basis for some Islamic checking and savings accounts.
Definition
Safekeeping or custody. A deposit arrangement where a financial institution holds funds as a custodian. There are two types: (1) Wadiah Yad Amanah — pure safekeeping where the custodian cannot use the funds and is not liable for loss except through negligence; (2) Wadiah Yad Dhamanah — safekeeping with guarantee, where the custodian may use the funds (with permission) but guarantees the return of the full deposit amount.
The latter is used as the basis for some Islamic checking and savings accounts. The bank may offer a voluntary gift (hibah) to depositors but is not obligated to do so.
Related Terms
Hibahهبة
A voluntary gift with no expectation of return — used in Islamic banking as discretionary bonuses on deposits.
Qard Hasanقرض حسن
A benevolent, interest-free loan where only the principal is repaid — the only fully permissible loan in Islam.
Amanaأمانة
Trust or safekeeping — a fiduciary relationship in Islamic finance.
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Wadiah (وديعة) — Safekeeping or custody — the basis for some Islamic checking and savings accounts. Safekeeping or custody. A deposit arrangement where a financial institution holds funds as a custodian.
- Safekeeping or custody — the basis for some Islamic checking and savings accounts.
- Category: Banking
- Related: Hibah, Qard Hasan, Amana
- Compare related Shariah-compliant products on HalalWallet
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Last reviewed: 2026-07-01
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