Saving accounts
Question
Is it permissible to hold your money in checking/saving accounts that generate an annual percentage yield?
Answer
In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
In principle, it is not permissible for one to open a cheque or savings account that generates interest upon ones deposit.
Alternatively, one should search for reliable Shariah compliant based cheque or savings account. One can also open a current account or any other account which is interest free.[1]
And Allah Ta’āla Knows Best
Ahmed-Ur-Rahmaan Ibn Mufti Mohammed Patel (Rahmatullah Alaih)
Student Darul Iftaa
Azaadville, Johannesburg, South Africa
Checked and Approved by,
Mufti Ebrahim Desai.
References (Arabic / Urdu sources)
فتاوى عثمانى (ج2 ص267/273) [1]
--
- Checked & approved by
- Mufti Ebrahim Desai
Fatawa SA is an independent, read-only index of fatawa already published by Darul Iftaa Mahmudiyyah (AskImam). It is not a fatwa service. For your own situation, ask the issuing Darul Ifta directly.