Session 5: Banking Basics
Understand how banks work, why interest is prohibited in Islam (Riba), and explore Islamic banking alternatives.
Your Progress
Learning Objectives
By the end of this session, you will be able to:
- Explain what banks do and how checking and savings accounts work
- Describe how interest works and why Riba is prohibited in Islam
- Compare Islamic banking models (murabaha, musharakah) with conventional banking
- Understand what a credit union is and how it differs from a bank
Why This Matters
Banks are where most money lives today. Understanding how they work — and the Islamic perspective on interest — is essential for making informed financial choices.
Session Lessons
What Banks Do
Discover what banks actually do with your money, how accounts work, and why banking exists.
~30 minutes Discussion
Interest and Riba
Learn how interest works in conventional banking and why it is prohibited in Islam.
~30 minutes Values
Islamic Banking Alternatives
Explore how Islamic banks work without interest. Learn about murabaha, musharakah, and other models.
~30 minutes Discussion
Credit Unions and Choosing a Bank
Learn what credit unions are, how they differ from banks, and how to think about choosing where to keep your money.
~30 minutes Activity