Transactions & Dealings >> Interest & Insurance

Question # : 59018

India

Is interest given by bank on people’s savings, fixed deposit account really equals to riba which is forbidden by Allah? The additional money which bank gives to its clients is a part of bank’s profit which it earns by doing business by using the money of its client. If anybody does business by using my money and does not give me a part of its profit, then it will be unethical. But, Islam pays great attention towards ethics. Whatever bank pays as additional money on the principal amount may be called as interest, but simply giving it a prohibited name is not enough to ban it. I think like those who are the idol-worshipper, call idols as their God. But, we Muslims do not accept it and the idol isn't transformed into God also just because it is being called as God.

Answer : 59018

Published on: May 27, 2015

بسم الله الرحمن الرحيم


(Fatwa: 410/410/SD=08/1436)

According to the Shariah the interest money received from the saving and fixed deposit accounts is interest. According to the Holy Quran and Hadith, it is unlawful to take it. Though the bank does business with the money which is deposited with it and earns profit yet the additional money which the bank pays other than the deposited money is riba (interest) in the sight of Shariah. It cannot be termed lawful by declaring it profit. As those who deposit their money in the bank they have no agreement with the bank concerning the business. The bank in each case offers interest as per its fixed percentage whether it invests the money in business or not.
قال في التفسير الأحمدي تحت قوله تعالى: واحل الله البيع وحرم الربا" لما كان من ظنهم التسوية بين الربا والبيع؛ لأنهم رأوا أنهم إذا اشترى الرجل مالاً يساوي درهماً بدرهمين جاز هكذا اذا باع درهماً بدرهمين جاز؛ إذ لا فرق بينهما في المعنى، رده الله تعالى وقال: وأحل الله البيع وحرم الربا إنكاراً للتسوية . وتحقيق هذا المقام أن البيع مبادلة مال بمال بالتراضي على وجه التجارة مافيه مشقة من العمل، وليس كذلك الربا، لأنه ينبئ الزيادة من غير مشقة من العمل مع إلقاء غيره من النفوس على الخطر .

Allah knows Best!


Darul Ifta,
Darul Uloom Deoband

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