Educational Investment Plan

Driving Question: How can we show the difference between Islamic and conventional banking?

In this project, you will work in groups of three to investigate personal banking of two banks, one that uses Islamic banking (Dubai Islamic Bank: and one with conventional banking (NBAD). For each bank you need to study the following:

1. Savings account (one type)
2. Credit card  (one type)
3. Financing a car (one plan)
4. Investment plan (one plan: e.g. Education investment plan)

1.  For each one of the above, you need to:
2. Find all the details of the plan/account (e.g. minimum deposit/payment, interest rate/profit, loan period, any penalties …)
3. Provide example(s) to demonstrate your understanding of the plan/account  (e.g. If Alia charges the credit card … amount, she needs to pay … each month and it will take her … months to pay the amount back…)
4. Explain the math in the examples using the formulas we learned in chapter 4 (compound interest formula, savings plan formula, the loan payment formula)

• Compare the two banks by comparing equivalent plans/accounts. Use this investigation to answer the driving question.

• Research the difference between Islamic and conventional banking (below are two websites you can use). Write about the differences in your own language. How does your answer in B compare to your answer in C?