There are several Islamic banks in USA, and we have filtered out the top ranking banks among them. Hence, if you’re among those searching for a nearby Islamic bank in United States of America, this content will be very helpful to you.
Jp Morgan, Standard Chartered Bank, and Devon, are some of the Islamic banks in the USA. Read the article to the end to see 10 banks that operate according to Islamic principles in the states.
Is There Any Islamic Banks In USA?
Yes, there are Islamic banks in the USA. So, if you are a Muslim who wishes to stay true to the principles and tenets of your religion while banking, then you should keenly read the options in this article. By the way, Islamic banking is a system of banking that follows the principles of Islamic finances as recognized by the religion. Some of those principles are;
- Not investing in harmful or unethical businesses
- Promoting financial inclusion for all
- Prohibition of interest-based loans.
So, Islamic banks make sure that these principles are strictly adhered to while maintaining the purpose of banking. See the number of Islamic banks operating in the US in the next paragraph.
How Many Islamic Banks Are In USA?
As of 2021, there were 21 Islamic banks in the USA. however, the number has since then increased drastically. Especially, with the influx of digital-only financial institutions that have no physical branches. Apart from digital banks, some other traditional banks have included Islamic banking in their services. See some of the best Islamic banks operating in the United States in the next section.
Islamic Banks In USA
Below is a list of 10 best Islamic banks in the USA. While some of them are full-time banks, others are non-bank financial institutions.
- Jo Morgan
- Fardows
- Standard Chartered Islamic Bank
- Devon Bank
- University Islamic Financial Corporation (UIF Corporation)
- American Finance House
- Dubai Islamic Bank.
- Guidance Residential, Reston, Virginia
- Manzil USA
- Amana Mutual Trust Fund.
Let’s briefly explain them’ to make it easier for you to choose the right bank for you;
JP Morgan
This is one of the most popular banks in the United States of America. And luckily, it is one of the best Islamic banks in the US. Founded in 1799, JP Morgan has demonstrated great financial leadership in Saudi Arabia and the US.
This bank has many locations in the United States that are dedicated to providing products and services that are in line with Sharia ethical principles. So if you have financial needs and want an Islamic banking solution, Morgan is your best bet. The bank has Cash management, investor, Murabaha liquidity, Risk management, Asset Management products, and so on. It is indeed a rich banking option that you should consider.
Fardows
Fardows is one of the best Islamic banks in the USA. It is a financial technology company that puts the religion or faith of its customers first. It allows Muslims to save, spend, and invest in a Halal and efficient way. By opening a Halal bank account with Fardows, you get access to a free debit card that can be used for ATM withdrawals as well as purchases. It gives loans without interest and it has no ATM fees.
The bank also has over 50,000 free ATMs in different parts of the United States. Sending and receiving money is also free and it provides several investment options and guides for you. I know you can already tell that Fardow is a good option when it comes to Islamic banking. See more as you continue reading.
Standard Chartered Islamic Banking
Standard Chartered Bank as you may have is a full-fledged bank that has a wide range of Islamic banking products and services. It has an Islamic unit known as Standard Chartered Saadiq. This unit is handled by professionals who make sure that the services and products are in line with Sharia rules for banking. There is also a professional advisory committee that scrutinizes the services and advice to make sure everything works well. This bank has branches all over the USA and in other parts of the world.
Devon Bank Chicago
Another Islamic Bank in the USA is Devon Bank located in Illinois, Chicago. It offers a wide range of banking services including Islamic and non-Islamic banking such as checking and savings accounts, business, and investment products, etc. The Islamic aspect of the bank is known as Murabaha Financing.
University Islamic Financial Corporation (UIF Corporation)
Founded in 1998 with its headquarters in Michigan, this corporation is a financial institution that provides Islamic banking, products, and services to educational institutions in the United States. It aims to help these schools access the finances needed to achieve their goals without having to pay any interest in compliance with the tenets of Islam. They give out working capital finances, lease equipment, finances for building and construction projects, and so on.
American Finance House – LARIBA
Similar to the above, America Finance House is a company that offers Islamic finance products and services in the USA. It was founded in 1987 and has its headquarters in California. Its mission is “Leasing Entrepreneurial Resources and Islamic Banking and Accounting” hence the acronym LARIBA. It has locations in the USA and other parts of the world.
Dubai Islamic Bank
This is another Islamic bank with locations in the United States. It can also be easily accessed online by anyone in any part of the world. Dubai Islamic Bank (DIB) was founded in 1975 by Saeed Bin Ahmed Lootah in the United Arab Emirates with its headquarters in Dubai.
It is reckoned as the first Islamic bank in the world that operates with the principles of Islam. It provides banking and insurance services to its customers all over the world including the USA.
Manzil USA
Manzil is another Islamic bank in the USA. It is a Sharia Compliant Halal finance hub. The products and services it offers include home financing, halal investment opportunities, the provision of a halal prepaid MasterCard, and so much more. All of these are in line with laws.
Amana Mutual Fund Trust
This is America’s first mutual trust fund built for Muslims. It is headquartered in Washington and aimed at providing halal investing opportunities. It provides long-term capital for sustainable growth in line with Sharia laws.
Guidance Residential, Reston, Virginia
Lastly on our list of Islamic banks in the USA is Guidance Residential. Unlike others, this is a non-bank financial institution founded in 2002 and headquartered in Reston, Virginia. It is aimed at providing home financing products in compliance with Islamic principles.
Thereby making home ownership easy for you in the USA. This is done by using a method known as the profit-and-loss structure where both the lender and borrower share in the loss or profit of the arrangement.
Can I Take A Loan From Islamic Banks?
The tenets of Islamic banking do not stop you from taking a loan as much as it is not coming with any interest. Adding any interest to an advance given is wrong and Islamic banks are not allowed to do that.
Can I Work With An Islamic Bank That Charges Fixed Profit Rates For Loans?
Working with such banks is not haram so, you are permitted to get a job with such an Islamic bank.
How Do Islamic Banks In The USA Make Money?
Islamic banks make money through what is called Equity Participation. This system requires that a borrower gives a part of his profit to the bank instead of paying interest.
Conclusion
Islamic banking is always there to help you grow your finances and meet your financial needs. If you are in the United States, study the options of Islamic banks in the USA that have been discussed in the article and grab the opportunity to change your status.