Is a Muslim better off earning no interest on money in the bank, or taking interest with intention of giving it to the poor?

Q: Is a Muslim better off earning no interest on money in the bank, or taking interest with intention of giving it to the poor?   الجواب حامدًا و مصليًا و منه الصدق و الصواب A: If it is possible to open an account with an Islamic bank or the Islamic window of a conventional bank and […]

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Is it permissible to open a current account with a bank which offers cashback on household bills?

Q: Is it permissible to open a current account with a bank which offers cashback on household bills?   الجواب خامدا ومصليا ومسلما ومنه الصدق والصواب A: This is a form of riba as the money deposited with a bank is a loan which brings the added benefit of a discount when using the account to pay […]

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Is the PayPal Working Capital scheme shariah compliant?

Q: Please could you have a look at the new scheme from PayPal called ‘PayPal Working Capital’ and let me know if it’s permissible, I have had a few people ask me and after looking at it, the scheme looks promising, but my limited knowledge cannot determine if it is indeed Sharia compliant?  الجواب حامدا […]

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Is it haram to pay off interest I unknowingly accumulated?

Q: I have accumulated an interest based debt of which I had no previous knowledge. Is it haram for me to pay off this interest or am I allowed to pay it off in order to have a ‘clean slate’ so to speak. الجواب حامدا ومصليا ومنه الصدق والصواب A: You should first attempt to […]

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The time value of money in Islam

Q:  A father invested 850,000 rupees into an interest profit scheme in Pakistan in 1995 in one of his sons name. In 1995 the value of the rupees was strong. The rupees rate to the English pound was £1=55 rupees. Therefore 850,000 rupees was £15,454 in the year 1995. After 20 years, in 2015 the interest […]

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Are Muslims allowed to take interest money from the bank and use it to pay their own taxes or insurance premiums?

Q:Are Muslims allowed to take interest money from the bank and use it to pay their own taxes or insurance premiums? الجواب حامدًا و مصليًا و منه الصدق و الصواب A: When needed, one should seek to open an account with an Islamic bank or the Islamic window of a conventional bank or a non-interest […]

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Is a Muslim better off earning no interest on money in the bank, or taking interest with the intention of giving it to the poor?

Q: Is a Muslim better off earning no interest on money in the bank, or taking interest with the intention of giving it to the poor? الجواب حامدًا و مصليًا و منه الصدق و الصواب A: If it is possible to open an account with an Islamic bank or the Islamic window of a conventional […]

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Are the products offered by Al Rayan bank Shari’ah compliant?

Q: Are the Home Purchase and Buy to let products offered by Al Rayan Shari’ah compliant? A: Al Qalam Shariah Panel have not audited Al Rayan bank’s products hence we are not able to comment on their shariah compliance. Each of the banks that offer Shari’ah compliant home purchase plans have a panel of external […]

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Is it permissible to take a business loan which requires payment of an insurance premium?

Hawkesbay Investment Corporation Limited The business is in conformity with standards and in line with normal  corporate ethics. Based on the loans agreement   drafted by our client and we guarantee that our client will only enter into a legitimate  business transaction as proposed with the funds. Legal & General Insurance  company  hereby  guarantee the safety […]

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Can interest money be used for paying Council Tax and car insurance?

Q: Can interest money received be used for paying Council Tax and car insurance? Additionally should interest money be disposed with non Islamic charities? A: Interest money cannot be used to pay council tax or car insurance. It should instead be given to the poor or utilised in public welfare projects without any intention of […]

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Is it permissible to hold a fixed term deposit or an ISA savings account?

Q: Are the fixed term deposit and ISA savings accounts permissible means in shariah in terms of the returns on one’s initial deposit?   الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: Any fixed term deposit account or ISA that gives interest or a guaranteed return on the initial deposit is not permitted.  It is possible to structure a fixed […]

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