A GIC (Guaranteed Investment Certificate) is one of the most common savings vehicles in Canada. You deposit money, you get a fixed return at the end of the term. Simple, low-risk, and widely used. But for Muslim savers, the fixed interest return is riba, which is prohibited under Islamic law.
Moya Financial offers a halal alternative to the conventional GIC: term deposit products structured as profit-sharing arrangements instead of interest-bearing deposits. Three product types are available, each with a different balance of flexibility and return. This review covers how each one works and who it's designed for.
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The shariah structure behind Moya's term deposits
Conventional GICs work like loans. You lend the bank your money and they pay you a fixed rate of interest. Moya Financial's term deposits work differently. When you deposit funds with Moya, you're entering a profit-sharing arrangement, typically structured as mudarabah or a similar Islamic finance model.
In a mudarabah arrangement, you provide the capital and Moya deploys it in shariah-compliant activities. The profits generated are split according to a predetermined ratio. If the underlying activities perform well, you earn a competitive return. The Islamic distinction is that you're participating in actual economic activity, not simply receiving guaranteed interest.
This matters practically as well as religiously. Profit-sharing returns are not guaranteed the same way GIC interest rates are. They depend on Moya's performance in the underlying activities. Ask Moya directly about their specific structure and what happens in a loss scenario before depositing.
Non-redeemable term deposits
Moya's non-redeemable term deposits are the most structured product in their lineup. You commit funds for a fixed term and agree not to withdraw them before the term ends. In exchange, you receive the highest profit-sharing rate Moya offers.
This is the right product for savings you're confident you won't need during the term. Common use cases: Hajj savings with a fixed departure date, a down payment reserve with a clear purchase timeline, or longer-term savings you want earning halal returns while sitting idle.
The risk is straightforward: if you need the money before the term ends, you may face significant penalties or may not be able to access the funds at all until maturity. Read the terms carefully before committing.
Redeemable term deposits
Moya's redeemable term deposits let you access your funds before the term ends. You can redeem early, but typically at a reduced profit-sharing rate. The specific terms vary, so confirm with Moya what the early redemption penalty or rate adjustment is before you deposit.
This product trades some return for flexibility. It's a reasonable choice for savers who want to earn halal returns on funds they might need access to, without locking themselves in completely. Think of it as a halal version of a redeemable GIC: competitive when held to term, accessible when needed.
Redeemable deposits are useful for an emergency fund supplement if you've already built your base emergency fund and want the extra savings earning something rather than sitting in a non-interest account.
Growing-rate term deposits
The growing-rate term deposit is Moya's most distinctive product. The profit-sharing rate increases at set intervals over the term of the deposit. The longer you hold it, the higher the rate that applies. If you redeem early, you receive whatever rate tier applied up to your withdrawal date.
This structure rewards patience without requiring a strict lock-in. It's designed for savers who expect to hold the deposit to term but want the option to exit earlier at a reduced rate if circumstances change. It also avoids the all-or-nothing nature of non-redeemable products.
For savers who are building toward a goal with a flexible timeline, this structure gives you an incentive to hold longer while preserving optionality.
How Moya's products compare to each other
Comparing across the three products, the non-redeemable option offers the highest rate, the redeemable option offers the most flexibility at a lower rate, and the growing-rate option sits between them with a structure that increases return over time.
If you have savings you absolutely won't need for 1 to 3 years and want maximum halal return: non-redeemable. If you need potential access to the funds: redeemable. If your timeline is flexible and you want built-in incentive to stay in: growing-rate.
How Moya term deposits compare to conventional GICs
Conventional GICs offer a fixed, guaranteed interest rate. Moya's products offer profit-sharing returns that are competitive but not guaranteed in the same way. In years where Moya's underlying activities perform well, returns may match or exceed comparable GIC rates. In lower-performing periods, they could be lower.
For Muslim savers who want halal compliance above all else, this comparison may be beside the point. A halal return of 3.5% and a conventional GIC at 4.5% are not directly comparable, because one involves prohibited riba and one doesn't.
For savers who are flexible on the halal question and are primarily looking at return, the gap between Moya's profit-sharing rates and conventional GIC rates should be factored into the decision. Contact Moya for current indicative rates and compare to what major banks and credit unions are offering.
Halal savings alternatives to Moya Financial
If you're outside Ontario or want to compare options, the main alternatives for halal savings in Canada are: TFSA accounts invested in shariah-screened ETFs or equity portfolios, and profit-sharing accounts at other Islamic financial institutions that may operate in your province.
For investors comfortable with equity market exposure, a halal ETF in a TFSA can generate competitive long-term returns with full Islamic compliance and TFSA tax-sheltering. The tradeoff is that equity returns are more volatile than term deposit returns.
Our full Moya Financial review covers their broader institutional profile, including who they are, their regulatory structure, and Ontario-only coverage. The halal investing hub has context on the full range of options for Canadian Muslim investors.
Bottom line
Moya Financial's term deposits fill a real gap: halal, deposit-style savings products for Ontario-based Muslim savers who want an alternative to conventional GICs. The three product types cover different flexibility needs. The structure is shariah-compliant, though the specific returns depend on Moya's performance rather than a fixed guarantee.
If you're in Ontario and looking for a place to park short to medium-term savings halal, Moya Financial is worth a direct conversation. If you're outside Ontario, the product isn't available to you yet.
Frequently asked questions
Are Moya Financial term deposits insured?
Ask Moya directly about their deposit insurance coverage before depositing. CDIC (Canada Deposit Insurance Corporation) covers eligible deposits at member institutions up to $100,000 per depositor per category. Whether Moya's profit-sharing products qualify for CDIC coverage is a function of their regulatory structure. This is a key due diligence question.
What terms are available for Moya Financial term deposits?
Contact Moya directly for current available terms. Typical term deposit options in Canada range from 30 days to 5 years. Moya's specific term options may vary by product type. Longer terms generally offer higher rates.
Can I automatically reinvest my Moya term deposit at maturity?
Ask Moya about automatic reinvestment options when you open your account. Many term deposit providers offer automatic renewal at maturity with the then-current rates. Knowing this in advance helps you decide whether to leave funds with Moya past the initial term or redirect them.
Is a Moya term deposit right for Hajj savings?
It can be, particularly the non-redeemable product if your Hajj date is fixed and your savings target is set. The growing-rate product is a good alternative if your Hajj timeline has more flexibility. The key is that the deposit term aligns with your expected Hajj date so you have access to the funds when you need them.
Compare providers in your state
See side-by-side comparisons of Shariah-compliant products, or let our matcher recommend the best options for your situation.
How do I open a Moya Financial account?
Visit Moya Financial's website directly or contact them to start the account opening process. As an Ontario-only institution, you'll need to confirm your Ontario residency. Have your identification documents ready, as all regulated financial institutions in Canada require identity verification before opening accounts.
