Is it permissible to hold a fixed term deposit or an ISA savings account?
March 31, 2017
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 term deposit or an ISA in a sharia-compliant manner that gives an expected rate of return. Typically, the deposit is invested on behalf of the customer with an advisory rate of return.