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?
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)