I've always been sceptical on what have I learned in class so far. In my course, the essence of Financial/Insurance system is breeding money through interests (ie: compound interest = interest over interest). But I never know to what extend is Riba' in our daily lives.

After I've attended an online discussion with few of my MCOBs, now I understand why I felt a bit sceptical from the start. It IS definitely Riba'.

"Riba equals to interest of any size. Riba = “gain accompanies gain”. No lose situation for the owner of money." - Zahid Aziz, Muamalah Financial Consulting

The definition of interest of any size is including receiving the interest from banks on your savings account. Why is that? Because you've never agree upon investing in that bank to gain your money! The word investment means that you will definitely know there are 2 outcomes from it, gain money or losing money. Having only to gain the money by interests payment is not in line with Shariah law.

While having to gain money, without losing is good (better yet, logically superior because who want to lose their money?), it is not what had been underlined by the Shariah in Al-Quran & As-Sunnah. As a devout Muslim, we have already agreed that everything sets in Al-Quran is the word of God and HIS messengers which been given to us to live according to HIS wishes. Therefore, we have to obey HIS rule (Shariah Law) and learn how to apply it in our daily lives.
So, what should we do? I'll take on these suggestions from this website:

1) Avoid Riba' altogether by switching to Islamic Finance system. (Kuala Lumpur is currently THE Islamic Finance capital of the world!)
2) If you can't avoid them, try to minimize as little as possible in the transaction.
3) Lessen your debt, pay more upfront (deposits) to reduce the amount of interest paid.

Do your best and your life will be blessed by Allah, InsyaAllah..Allah knows best.

**Please download this FILE for better understanding of the issue.