I have invested 70 thousand in National Savings certificate in order to save tax. I have invested this in December i.e. current month and will receive money after 5 years with interest below are my two questions.
1. Can I use the interest received on it and my actual money?
2. Will I be required to pay zakah when I receive money or do I need to pay zakah every year during Ramadan?
بسم الله الرحمن الرحيم
(1) The ruling regarding interest money is that it should be given to the poor and needy ones without the intention of reward. It is not lawful to spend interest money in personal use.
لأن سبيل الكسب الخبيث التصدق إذا تعذر الرد على صاحبه (شامى: 9/553)
(2) It is wajib on you to pay the zakah of this amount. However, you have option in paying whether to keep on paying each year or pay the zakah of all previous years in one time after you receive the money.
Allah knows Best!
Darul Uloom Deoband