Islamic Banking
*Shariah Mutual Funds available through New England Financial. Mutual funds are sold by prospectus only, which is available from a registered New England Financial representative. These funds are securities and insurance products ~ Are Not NCUA Insured ~ Are Not ESI Guaranteed ~ May Lose Value ~ Are Not a Credit Union Deposit ~ Are Not a Condition to Any Banking Service or Activity ~ Are Not Insured by Any Federal Government Agency.
Shariah-Based Banking at North Jersey Federal Credit Union
Shariah Deposit Products
North Jersey Federal Credit Union is pleased to be the first Shariah-based, NCUA-insured deposit program: the Islamic Savings Deposit Account. The program is available only at North Jersey Federal Credit Union to assist members who seek a Shariah-based dividend on their deposits. Members' deposits are federally insured by the National Credit Union Share Insurance Fund for a total of $250,000 ensuring that your money will be there for you when you need it. We insure accounts up to $500,000; $250,000 through the NCUA and an additional $250,000 through private Excess Share Insurance. The minimum deposit is only $50 to open this savings account.
Free Checking Account
This account gives you easy, regular access to your funds.
An NJFCU Checking Account offers many money-saving benefits not available from other financial institutions. It is the checking account you will want to use to manage your family's finances on a daily basis.
- No application fee
- No monthly maintenance fee
- No limit to number of checks written per month
- No minimum balance requirement
- No per check fees
- Duplicate checks
- ATM access (STAR network)
You can also access your account with our free internet-banking service; pay your bills with free internet bill pay, and make withdrawals through 37,000 surcharge-free ATM machines through the Co-Op network.
Shariah –Based Share Savings Account
How Does The Islamic Savings Deposit Work?
Pending regulatory approval, North Jersey Federal Credit Union can offer you a unique Shariah-based profit sharing account. These accounts give you easy, regular access to your funds. These deposits share profits from North Jersey Federal’s Islamic Lending Program which is Shariah-based portfolio of auto, business and home financing products and services. Your accounts can be accessed via internet banking, ATMs, and checks.
Acceptable Assets
The yield on Islamic Savings Deposits will be based upon the gross operating profit of our business line, the Islamic Lending Program, and therefore is not set in advance. As a provider of Shariah-compliant residential mortgage alternative programs, North Jersey Federal Islamic Share Savings income is from such assets.
Arriving at an Acceptable Share Deposit Dividend
The dividend is based upon a percentage of the return on the NJFCU Islamic Lending Program. This formula is free of unacceptable gharar (risk). The return on your deposit is not set in advance, could go up or down, even fall to zero and is free of riba (interest). The assets of this business line will be Shariah-based. Any profit or yield will be 100% permissible for you to keep.
The yield on your account is based on NJFCU Islamic Lending Program profits earned times your proportional share of the average NJFCU Islamic Profit Sharing Deposit accounts for each period. Your actual percentage yield will vary depending on the amount of your deposit and the total amount of deposits in the North Jersey Islamic Deposit plan.
To comply with the federal credit union regulation on truth-in-savings, the yield on the North Jersey Islamic Deposit will be disclosed as an Annual Percentage Yield (APY) with the calculation based on an assumed term of 365 days. The APY on your account will be variable and may change every dividend period as determined by the credit union board of directors. Dividends are paid from earnings of the NJFCU Islamic Lending Program, after required transfers to reserves at the end of a dividend period.
The dividend period for monthly accounts begins on the first calendar day of the month and ends on the last calendar day of the month. The dividend period for quarterly accounts begins on the first calendar day of the quarter (January 1, April 1, July 1, October 1) and ends on the last day of the quarter. The dividend declaration date is the ending date of the dividend period. Dividends begin to accrue on the day you deposit cash and non-cash items to your account. Dividends will be credited to your account at the end of each quarter. If you close your account before dividends are credited, you will not receive accrued dividends.
Meet The Green Machine at the Paterson Mosque, ICPC!
Experience the Green Machine every other Friday beginning June 25, 2010 at the Paterson Mosque, ICPC located on 152 Derrom Avenue, Paterson, NJ 07504. Whether you're visiting us to handle your banking or you just want to learn more about Islamic Banking and our wide range of products and services, we look forward to seeing you there.
