What does Hibah mean in Islamic banking? 

Hibah is a gift given freely without expecting anything in return. In banking, it refers to a voluntary offering from a financial institution to its customers, such as extra cash or perks, for maintaining a certain amount in an account or as a goodwill gesture on savings. This offering is entirely at the institution's discretion and is not guaranteed.

Is Hibah the same as interest or profit? 

No, they’re very different! Interest is a fixed charge required to be paid on a loan. Hibah is a voluntary gift with no strings attached—nothing is owed back. It’s not guaranteed or part of any contract. Hibah cannot be promised or used as a way to bypass interest rules in Islamic finance.

How is Hibah different from charity (Sadaqah) in a banking context? 

While both are generous acts, Hibah in banking is a discretionary gift from a financial institution to a customer, often as a reward for loyalty or maintaining a deposit. Sadaqah, however, is charity given specifically to help the poor or needy.

Who can give Hibah? 

Anyone who owns something can give a Hibah—individuals, financial institutions, or organisations. The key is that the giver must legally own the gift (like money or an asset) and give it freely, without being forced.

What kinds of things can be given as Hibah? 

Hibah can be anything valuable that can be owned—like cash, property, jewelry, or even a car. In banking, it’s often money or small rewards, given to customers as a bonus for using certain services. It isn’t just money; it could be things like gadgets, free services, or special privileges, like access to a premium feature. The giver decides what to provide, and it’s all free for the receiver. Hibah can be any asset—cash, property, shares, or even intangible assets like trademarks—as long as it's permissible under Shariah.

Does Hibah have to be accepted by the receiver?

Yes, for Hibah to be complete, the receiving party must accept it. If they decline, the gift doesn’t take effect. It’s a two-way agreement, even though the giver doesn’t expect anything back.

Can a giver take back a Hibah after giving it?

Usually, no. Once the receiver has received and taken possession of a Hibah, it’s theirs for good. But if it came with specific conditions (like “you get this if you do X”) and those conditions aren’t met, the giver might cancel it—details depend on the agreement.

Can Hibah be given with conditions attached in a deposit context?

Generally, Hibah should be unconditional, given freely without strings attached. However, in banking, a Hibah might depend on something simple, like maintaining a certain balance or keeping a deposit account active. Still, it can’t feel like a trade or a loan (like Qard), where repayment is required.

Why do financial institutions offer Hibah to customers? 

Financial institutions offer Hibah as a way to thank or reward customers for saving or investing with them. Since Islamic financial institutions can’t pay interest, Hibah acts as a discretionary gift to make customers feel appreciated and encourage them to keep their money with the institution. 

What happens if a financial institution promises Hibah but doesn’t give it? 

In Islamic banking, Hibah is supposed to be discretionary, meaning financial institutions can’t legally promise it upfront like a guaranteed payment. If they promise it and don’t deliver, it’s not technically Hibah anymore; it’s more like a broken deal. True Hibah is a surprise gift, not an obligation.

Can a financial institution guarantee or advertise Hibah rates for Qard accounts?

No. Hibah is not guaranteed. The financial institution may choose to give a gift (like extra money or rewards), but it is not something that can be demanded or expected every time. A financial institution cannot promote or suggest any specific Hibah rate for Qard accounts. However, it can share past information with clear disclaimers that there’s no guarantee of future gifts.

How does Hibah benefit an individual? 

Hibah benefits an individual by acting as a surprise bonus that makes banking feel rewarding. It's a discretionary gift from a financial institution, often provided as a reward for loyalty or maintaining a deposit, contributing to a fair and friendly Islamic banking experience.

How does Hibah fit into Islamic values?

Hibah reflects Islamic values of generosity, kindness, and helping others. It’s a way to share wealth or rewards without greed, promoting fairness and goodwill in the community.

What happens to Hibah if an individual passes away before it is completed?

For Hibah, if the gift hasn't been accepted or the conditions aren't fulfilled (e.g., a conditional Hibah was made), it may become part of the estate unless specified otherwise.