Glossary
Wadiah
Safekeeping: leaving money or goods with someone to look after for you.
وديعةwadī'ah
Wadiah is a deposit for safekeeping. It appears in card structures as the account that holds the cash generated by a bai' al-inah so that the cardholder can spend it: Bank Negara's SAC approved exactly that pairing in April 2001, with wadiah providing custody services for the funds raised under the inah. In the guaranteed form, wadiah yad dhamanah, the custodian guarantees the deposit and may use it, which brings it close to a loan and is why its treatment is carefully specified.
Related terms
Bai' al-InahSelling something to someone on credit and buying it straight back for less cash, so they get money now and owe more later.AmanahTrust: holding something for someone else, so you are only liable if you were careless or dishonest.Qard HasanA loan on which the lender gets back exactly what was lent and nothing more.MudarabahA partnership where one side puts up the money and the other does the work, and they share the profit.
Sources
- Bank Negara Malaysia, Shariah Resolutions in Islamic Finance, 2nd edition, item 89