1. INTEREST ON DEPOSITS : Islamic banks pay no interest on deposits.2. INTEREST ON DEPOSITS : Islamic banks pay no interest on deposits . 3. Such a step encourages other banks to reduce interest on deposits and loans. 4. Charging interest on loans and paying interest on deposits became more highly developed and competitive. 5. Although they pay higher interests on deposits , they are susceptible to rapid and widespread withdrawals. 6. This allows providers to earn interest on the asset and hence to pay out interest on deposits . 7. As a result, Islamic banks do not pay any interest on deposits or charge interest for loans. 8. Banks buy securities such as U . S . Treasury bills as a means of earning interest on deposits . 9. About $ 15 billion has been raised, including interest on deposits , with about $ 6 billion having been spent. 10. But it very quickly became clear that'outsider'savers were needed whose motive was profit through interest on deposits .
