Islamic banks continue to grow rapidly, marked by the availability of a variety of
savings products, financing, and financial transaction services that are
increasingly innovative. This effort is carried out as an innovation of Islamic
banking products to suit all customer needs and be able to compete with
conventional bank financial transaction products and services. The current Islamic
financial literacy index of the Indonesian people which is classified as well literate
is only 8.93% and the current Islamic banking literacy index is 7.92%. The
purpose of this study was to determine the effect of the literacy level of Islamic
banks and Islamic bank product contracts on the interest of Universitas
Muhammadiyah Purwokerto students to save in Islamic banks.
This type of research is quantitative research with a quantitative-descriptive
approach and collects data through questionnaires. The analysis in this study is
designed to interpret and draw conclusions from the large amount of data
collected. Data analysis used in this study was assisted by SPSS Statistics version
25 software. The sampling technique was generally carried out randomly.
The results of the study show that Islamic bank literacy affects the interest of
Purwokerto Muhammadiyah University students to save in Islamic banks by
53.9% with an R Square value of 0.539 on the independent variable consisting of
the literacy level of Islamic banks and Islamic bank product contracts, while the
rest are 46.1% is influenced by other variables not examined in this study.