Is it permissible to invest in CD’s (Certificate of Deposits)?

Answered according to Hanafi Fiqh by

Is it permissible to invest in CD’s (Certificate of Deposits)?


In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

A Certificate of Deposit is a savings certificate at various denominations issued primarily by commercial banks where the holder receives interest at a specified rate upon maturity.

Unlike savings accounts, a CD has a maturity date, after which you can withdraw your funds in full with an additional interest. If you choose to withdraw before that date, you’ll have to pay an early-withdrawal fee.

Investing in Certificates of Deposits is impermissible as it is an interest bearing investment.

And Allah Ta’āla Knows Best

Mawlana Faraz ibn Adam al-Mahmudi,

This answer was collected from, which is operated under the supervision of Mufti Faraz ibn Adam al-Mahmudi, the student of world renowned Mufti Ebrahim Desai (Hafizahullah).

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