Assalamualaikum, Is it permissible to buy premium bonds from the post office? You invest your money by buying bonds and instead of paying interest all eligible bonds go into a prize draw every month with cash prizes. The total prize fund is worked out based on one months interest on the total value of all eligible bonds.
After the prize draw, if every bond holder receives the amount he initially invested, then it will be permissible for one to buy these bonds for saving purposes. If they do not receive the actual amount, then this will take the ruling of gambling which is Haraam.
Please note that the ruling mentioned above does not apply to the prize money.
And Allah Ta’ala knows best
Mufti Muhammad Ashraf
08 August 2005
02 Rajab 1426