IslamQA

Bank Interest

Answered according to Hanafi Fiqh by Muftisays.com
I have deposited a sum of money in a Bank with the intention to pay our house rent & treatment of my elderly parents. The bank in in return will give me a sum of money monthly basis. My question is the deposit money in Bank haram ?

Answer
Bismillah

Al-jawab billahi at-taufeeq (the answer with Allah’s guidance)

Fixed deposit is Haraam and not permissible.

Note: A Fixed Deposit is like loaning the bank your money. In return, they pay you interest.

Allah Ta’ala states:

“O! you who believe, fear Allah and give up what remains of your demand for usury, if you are indeed believers. But if you do not (abstain) take notice of war from Allah and His Apostle…”
(2: 279)

However, the money you deposited is not Haraam.

We advise you to take out the money you have deposited from the conventional banks and any interest you have gained on your deposits you must give to those eligible for charity without any hope for reward.

Alternatively, you can invest your money in a bank which is completely Shariah compliant. Again, we advise that you ask any reliable scholars in your place of residence when you want to deal with an Islamic bank, as some banks do not comply with Shari’a rules completely.

And Only Allah Ta’ala Knows Best.

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Moulana Qamruz Zaman
London, UK

Original Source Link

This answer was collected from MuftiSays.com, based in London (UK). It is one of the fruits of Darul Uloom London. Many ‘ulama are involved in answering the Q&A on the site, including: Shaikul Hadeeth Mufti Umar Farooq Sahib, Mufti Saifur Rahman Sahib, Mufti Abdullah Patel Sahib, Maulana Qamruz Zaman Sahib, Mufti Abu Bakr Karolia Sahib.

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