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 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.

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