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 […]
Read more...Category: Banking Fatawa
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 […]
Read more...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 […]
Read more...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 […]
Read more...Where should I keep my savings?
Q: I have some savings in a current account from a conventional bank that does not charge interest as far as I have been told, and just over £1000 saved in my saving account, that charges a minimum interest rate, that I do not have to hand now but I am told it is due to go […]
Read more...Receiving a refund for mis-sold PPI and interest
Q: My father has received a refund for mis-sold PPI on a credit card for period from 2000 – 2012. They have also refunded interest he paid, as well as 8% interest on top as statutory compensation. Is the refund of the interest he paid permissible to keep? Also the 8% interest as compensation? We […]
Read more...Can you explain the concept of LIBOR?
Q: Can you explain the concept of LIBOR? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: Please read from page 117 from the link below: http://islamicfinancenews.files.wordpress.com/2009/09/an20introduction20to20islamic20finance.pdf It has covered this issue in a very easy to understand way.
Read more...Is National Savings Accounts Islamically permissible?
Q: Is National Savings Accounts Islamically permissible? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب National Savings Account wherein the principle is guaranteed and there is a definite return is not Sharī‘ah compliant. However, if anyone has deposited money into such an account the money so deposited will be liable for Zakāh.
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