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Yes, they are interest free. The question might arise if it is interest free how come people will deposits their money without getting interest. To understand this, we need to know the Islam prohibits usury (interest) and hence the followers of Islam generally don't use the interest money which is paid by the conventional banks. When the Islamic banks started operating most of the followers of Islam switch over the Islamic Banks so as to avoid the usury.
Then How Islamic Banking works if usury is not paid/charged : - The Islamic banking works on profit and loss sharing whereby the depositers enters into agreement with the Islamic bank and appoints the banks as its trustee for the money. Thus the profit or loss is shared by bothe the bank and the customer without the invovment of Interest (usury)
