Are Bank CD Certificates permissible?

Answered according to Hanafi Fiqh by DarulIftaBirmingham

Are Bank CD Certificates permissible?

In the name of Allah, the most Beneficent, the most Merciful.  


Certificate of deposit or CDs are similar to savings accounts in that they are insured and thus virtually risk-free; they are “money in the bank”. They are different from savings accounts in that the CD has a specific, fixed term (often three months, six months, or one to five years) and usually a fixed interest rate. In exchange for keeping the money on deposit for the agreed-on term, institutions usually grant higher interest rates than they do on accounts from which money may be withdrawn on demand.

From an Islamic perspective, such a transaction will be considered unlawful and haraam in Islam. This is because interest transactions are strictly prohibited in Islam.

The Holy Prophet (saw) has said:

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The Holy Prophet (saw) has cursed the person who takes interest, who gives interest, who writes it and who witnesses it.”

???? ?????? ????? ????? ??? ???? ??? ?? ??? ??????? ????   (?????  ?246 ?1)

“To take one dirham of interest knowingly is worse than committing adultery 36 times.”

??? ???? ???? ? ?????? ????? ???? ?????? ?? ???? ????? ??? (?????  ?246 ?1)

“A person who involves himself in usury will be afflicted with 70 kinds of sins. The lightest in comparison with others is committing adultery with your own mother.”

In the Holy Qur’an Allah has said:

?????? ????? ????? ????? ???? ????? ?? ??? ?? ?????? ?? ???? ??????. ??? ?? ?????? ?????? ???? ?? ???? ??????                                                                                                                   “O’ you who believe! Be afraid of Allah and give up what remains of riba if you are believers. And if you do not do it, then be ready for war with Allah and his Prophets.” (Cha.2 Verse 278)

Only Allah Knows Best

Mohammed Tosir Miah

Darul Ifta Birmingham

This answer was collected from, which is run under the supervision of Mufti Mohammed Tosir Miah from the United Kingdom.

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