Q: Are we allowed to use credit union deposit schemes since they offer dividend instead of interest and its a very small amount. 1% or 2% dividend is offered on your savings annually. Please advice accordingly as dividend and interest are different as described by the finance experts, dividend is a profit on your money. الجواب حامدا ومصليا […]
Read more...Category: Investments Fatawa
Is it permissible to invest in a Sharesave scheme of a bank?
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 […]
Read more...Is the final salary/defined benefit scheme permissible?
Q: I am a teacher in a secondary and one thing that is offered to all teachers is the Teacher Pension scheme. such a scheme or any pension scheme deemed as halal, would it be better to opt-out of such schemes? It is the teacher pension scheme offered by the government. Each month an amount […]
Read more...I wish for my shares and ISA’s to be passed directly to my wife after death. How do I incorporate this in to my will?
Q: I wish for my shares and ISA’s to be passed directly to my wife after death. How do I incorporate this in to my will? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: When an individual passes away there are two ways that, after meeting debts and expenses of the final rites, ownership of his residual […]
Read more...How is Zakat paid on a ‘committee’ scheme between several individuals?
Q: How is Zakat paid on a ‘committee’ scheme between several individuals? I am currently calculating my Zakat for this year and wanted to know how we deal with a ‘committee’ which is a type of loan which is interest free, where there are a number of members and each member pays a certain amount and […]
Read more...Is there an Islamic way where you can guarantee percentage of profitability for the investor?
Q: Is there an Islamic way where you can guarantee percentage of profitability for the investor? الجواب حامدًا و مصليًا و منه الصدق و الصواب A: It is not permitted to guarantee a percentage of profit to the investor. Rather, the very basis for his eligibility for profit is that he is also exposing himself to […]
Read more...Are ‘Child Trust Funds’ permissible?
Q: Are ‘Child Trust Funds’ permissible? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: The concept of a CTF in which money is set aside for a child until he/she reaches 18 years of age is one that is in conformity with Verse 6 of Surah al-Nisa. However, it is how the money is invested, […]
Read more...Can I invest in premium bonds?
Q: Can I invest in premium bonds? The Al-Qalam Shariah Scholars Panel is respectfully requested to advise on the Islamic position regarding premium bonds. Are they a suitable way for Muslims to invest? الجواب حامدًا و مصليًا و منه الصدق و الصواب A: Premium Bonds are not suitable for Muslims to use as an investment […]
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...What part of a Guaranteed Investment Certificate is haram?
Q: What part of a Guaranteed Investment Certificate is haram? My questions are about purifying myself because of my investments. I have money in a GIC (Guaranteed Investment Certificate) which focuses on blue chip companies: There portfolio breakdown is as follows: 20% Energy, 10% Conglomerates, 10% Utilities, 10% Telecommunications Services, 10% Mines & Minerals, 10% […]
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