I would like to do some sort of investment(s) where I can have extra money for my children when they are ready to go to college? What kind of investment(s) can a Muslim look into?
Question
I would like to do some sort of investment(s) where I can have extra money for my children when they are ready to go to college? What kind of investment(s) can a Muslim look into? Over here in the USA, I was able to find information on US Savings Bonds, and most banks offer savings accounts for children, but they accrue interest? Please offer your guidance in regards to this issue.
Answer
In principle, all commercial investment schemes contain elements of interest, hence, not permissible.
We suggest instead of depositing money into a savings account at a bank which accrues interest, save the money personally and thereafter whenever the need arises to use the funds you may do so without getting involved in interest.
and Allah Ta'ala Knows Best
Mufti Ebrahim Desai
- Answered 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.