• Transactions & Dealings >> Interest & Insurance

    Question ID: 31504Country: India

    Title: Interest amount on PPF

    Question: I was working in a private limited proprietorship firm . As per the company rules I was forced to open PPF (Public Provident Fund) account in nationalised bank. This was done against my Wish and company started deducting 12% from my salary and issued me cheques directly favouring PPF account. The account is going to mature in next year. Please let me know if Intrest amount from this saving is JAIZ or not?

    Answer ID: 31504

    Bismillah hir-Rahman nir-Rahim !

    (Fatwa: 740/509/L=1432) If the company gives the PPF amount in your possession and you opt to deposit the amount in bank, then the interest earned on the amount shall not be lawful for you. You will have to give the interest amount as charity to the poor and needy ones without an intention of reward.

    Allah (Subhana Wa Ta'ala) knows Best

    Darul Ifta,

    Darul Uloom Deoband, India