---
title: "What is Wadiah yad amanah? | IslamicOpenFinance™"
description: "Safekeeping on trust: the custodian holds the asset without using it and is liable only for negligence or misconduct."
url: https://islamicopenfinance.com/glossary/wadiah-yad-amanah/
lang: en-GB
source: "IslamicOpenFinance"
---

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

Deposits and accounts

# Wadiah yad amanah

Safekeeping on trust: the custodian holds the asset without using it and is liable only for negligence or misconduct.

Wadiah yad amanah is safekeeping based on trusteeship, which Bank Negara Malaysia's policy document describes as the inherent nature of wadiah. The custodian is not liable for loss of the asset unless caused by misconduct, negligence or breach of terms, and either party may end the contract unilaterally. Because using deposited money turns the contract into a qard under the same document, the pure form fits custody of items and documents better than bank accounts.

## Sources

- [Bank Negara Malaysia, Wadi\`ah policy document, 2016: nature of wadi\`ah, wadi\`ah yad amanah](https://www.bnm.gov.my/documents/20124/938039/Wadiah_PD.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

[**Wadiah** Safekeeping: an asset placed with a custodian to be kept and returned on demand.](https://islamicopenfinance.com/glossary/wadiah/) [**Qard** A loan of money to be repaid in an equivalent amount; any benefit stipulated for the lender is riba.](https://islamicopenfinance.com/glossary/qard/) [**Fiduciary risk** The risk that an institution fails to meet the standards that apply to its duties as trustee or manager of others' funds.](https://islamicopenfinance.com/glossary/fiduciary-risk/)

**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. [Restricted investment account](https://islamicopenfinance.com/glossary/restricted-investment-account/)
8. [Investment account holder](https://islamicopenfinance.com/glossary/investment-account-holder/)

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