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Investing Money in the Banks

Q: I have a question about investing money in the Bank. Few banks are offering me to open a monthly saving account. They are promising me a profit of 11.5% every month for investing with them. I will be receiving this amount without losing my investment. Is this permissible in Islam?

Investing Money in the Banks

A: In Islam, it is not permissible to stipulate the profits in proportion to the capital investment. Hence, if the 11.5% profit every month is stipulated in proportion to the capital investment, it will be impermissible.

(و لا يجوز الشركة إذا شرط لأحدهما دراهم مسماة من الربح) لأنه شرط يوجب انقطاع الشركة فعساه لا يخرج الا قدر المسمى لأحدهما (هداية 2/632)

Answered by:

Mufti Zakaria Makada

Checked & Approved:

Mufti Ebrahim Salejee (Isipingo Beach)

This answer was collected from MuftiOnline.co.za, where the questions have been answered by Mufti Zakaria Makada (Hafizahullah), who is currently a senior lecturer in the science of Hadith and Fiqh at Madrasah Ta’leemuddeen, Isipingo Beach, South Africa.

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