Q: Please advise if this method of saving money is halaal.
6 people each agree to participate in a group savings plan. Each person pays monthly to 1 person an amount of R1000.00 for 12 months. Person 1 recieved R12000 in the first month being January. Then person 2 recieves R 12000 in March and so on and so forth; whilst each person still pays R 1000.00 for the rest of the year. In this way each person recieved a bulk amount of R 12000.00 even though they may not have paid their full amount on their turn of taking out the R12000.
A: If they willingly contribute the money without any conditions attached then it is permissible.
And Allah Ta’ala (الله تعالى) knows best.
Answered by:
Mufti Ebrahim Salejee (Isipingo Beach)