Hibah
هبة
Pronunciation: HEE-bah
A voluntary gift with no expectation of return — used in Islamic banking as discretionary bonuses on deposits.
Definition
A voluntary gift given without any expectation of return or consideration. In Islamic banking, hibah is used by some institutions to provide returns on savings and current accounts without characterizing them as interest.
The bank holds deposits under a wadiah (safekeeping) or qard (loan) arrangement and may give account holders a discretionary hibah (bonus) based on the bank's performance. Because the hibah is voluntary and not guaranteed, it is not considered riba.
Related Terms
Wadiahوديعة
Safekeeping or custody — the basis for some Islamic checking and savings accounts.
Qard Hasanقرض حسن
A benevolent, interest-free loan where only the principal is repaid — the only fully permissible loan in Islam.
Ribaربا
Interest or usury — the most strictly prohibited practice in Islamic finance.
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Hibah (هبة) — A voluntary gift with no expectation of return — used in Islamic banking as discretionary bonuses on deposits. A voluntary gift given without any expectation of return or consideration. In Islamic banking, hibah is used by some institutions to provide returns on savings and current accounts without characterizing them as interest.
- A voluntary gift with no expectation of return — used in Islamic banking as discretionary bonuses on deposits.
- Category: Banking
- Related: Wadiah, Qard Hasan, Riba
- Compare related Shariah-compliant products on HalalWallet
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Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-03-06
Editorial Team, HalalWallet
Independent halal finance research · A member of Niya
Reviewed quarterly and updated for major content changes.