• Prayers & Duties >> Zakat & Charity

    Question ID: 120Country: India

    Title: I would like to know if I were to put $10,000 into an Islamic bank that they invest and pay you any profit earned on the investment (Similar to what the HSBC or Bank Islam do in Malaysia). Would I be liable to pay Zakat on this $10,000 or only on the profit that I would make at the end of the month or year and given to me by the bank if I left the $10,000 in the account.

    Question: I would be grateful if you are able to answer the question below: I would like to know if I were to put $10,000 into an Islamic bank that they invest and pay you any profit earned on the investment (Similar to what the HSBC or Bank Islam do in Malaysia). Would I be liable to pay Zakat on this $10,000 or only on the profit that I would make at the end of the month or year and given to me by the bank if I left the $10,000 in the account.

    Answer ID: 120Posted on: Sep 1, 2020

    Bismillah hir-Rahman nir-Rahim !

    (Fatwa:  373/M=374/M)

    If you invest $10,000 in any bank as Muzarabah (bank working with your capital and the profit/loss are shared by both) then the profit of the investment is Halah for you and you have to pay zakah on both; capital and profit.

    Allah (Subhana Wa Ta'ala) knows Best

    Darul Ifta,

    Darul Uloom Deoband, India