Question:
Assalam u alayekum Syyedi Sheikh Hisham!
Previously I read a post here in which it was said that fixed deposit is interest. But some friends have raised a point that we know that the value currency keeps going low these days i.e. 1000 of today will be worth 500 of some other day in the future. So in order to compensate for that value loss, we take fixed deposit.
Isn’t this reasoning enough for fixed deposit and saving certificates? If not please explain why?
Shukran ya Syyedi. May Allah bless you and Maulana Sheikh Nazim with more Tajalliyat and anwaar.
Answer:
wa `alaykum salam,
This is an answer to those who want to know what Islam says about the profit being given on fixed deposit.
If it is a non-Islamic bank, then it is haram, as the bank’s earning will be based on interest.
Imam Senad Agic, Ph.D.
Head Imam (IABNA)
The Islamic Association of Bosniaks in North America
www.mesihat.com
