Q: Can you tell if the following two forms of investments are permissible from a sharia perspective. Intention is to use the schemes as tax efficient vehicles only with a view of separating any impermissible profit and donating it to charity at the end of the scheme. 1. Sharesave – Sharesave scheme of a bank […]
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Is it permissible to take an offset mortgage?
Q: Many conventional banks have products called ‘Offset’ Mortgages. These are mortgages whereby: If i have a mortgage of 50K and savings of 50K the savings offsets the interest on the remaining mortgage value. So in the above case 50K mortgage, 50K savings means zero interest. Hence, is it permitted to take a conventional mortgage whereby […]
Read more...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 […]
Read more...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 […]
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.
Read more...Do I HAVE to use an Islamic account for my business banking?
Q: Do I HAVE to use an Islamic account for my business banking? I have recently set up a limited company and need to open a business account. The only ‘halal’ business account I can find is from the Islamic Bank of Britain. My issue with them is that they charge for almost everything including […]
Read more...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 […]
Read more...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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