---
title: "What is Restricted investment account? | IslamicOpenFinance™"
description: "An investment account whose holder limits where, how or for what purpose the bank may invest the funds."
url: https://islamicopenfinance.com/glossary/restricted-investment-account/
lang: en-GB
source: "IslamicOpenFinance"
---

[Glossary](https://islamicopenfinance.com/glossary/) / [Deposits and accounts](https://islamicopenfinance.com/glossary/#accounts)

Deposits and accounts

# Restricted investment account

An investment account whose holder limits where, how or for what purpose the bank may invest the funds.

Restricted investment accounts are accounts whose holders authorise investment of their funds under mudarabah or wakalah with restrictions on where, how and for what purpose the funds are invested, as the IFSB defines them. The bank cannot commingle these funds freely with its own. They are often managed off the balance sheet, and AAOIFI has an accounting standard on off-balance-sheet assets under management.

## Sources

- [IFSB-23 Revised Capital Adequacy Standard (Banking Segment), 2021: Definitions, Restricted investment accounts](https://www.ifsb.org/wp-content/uploads/2023/10/IFSB-23_En.pdf)

This entry explains a term; it is not a Shariah ruling. Approving a product is for each institution's own Shariah board and regulator.

## Related terms

[**Unrestricted investment account** An investment account whose funds the bank may invest at its discretion and commingle with its own in a pooled portfolio.](https://islamicopenfinance.com/glossary/unrestricted-investment-account/) [**Restricted mudarabah** A mudarabah in which the capital provider limits where, how or for what the capital may be invested.](https://islamicopenfinance.com/glossary/restricted-mudarabah/) [**Off-balance-sheet assets under management** Assets an institution manages for others, such as restricted investment accounts, that are reported outside its own balance sheet.](https://islamicopenfinance.com/glossary/off-balance-sheet-assets-under-management/) [**Investment pool** A group of assets funded by identified sources, such as shareholders or investment account holders, whose income is allocated to them.](https://islamicopenfinance.com/glossary/investment-pool/)

**Deposits and accounts**

1. [Wadiah](https://islamicopenfinance.com/glossary/wadiah/)
2. [Qard](https://islamicopenfinance.com/glossary/qard/)
3. [Hibah](https://islamicopenfinance.com/glossary/hibah/)
4. [Islamic deposit](https://islamicopenfinance.com/glossary/islamic-deposit/)
5. [Profit-sharing investment account (PSIA)](https://islamicopenfinance.com/glossary/profit-sharing-investment-account/)
6. [Unrestricted investment account](https://islamicopenfinance.com/glossary/unrestricted-investment-account/)
7. [Investment account holder](https://islamicopenfinance.com/glossary/investment-account-holder/)
8. [Wadiah yad amanah](https://islamicopenfinance.com/glossary/wadiah-yad-amanah/)

[All 221 terms](https://islamicopenfinance.com/glossary/)