If some one deposite money in bank for a fix period and get a fix amount every month is it interest(Hiba) or not?
Question
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If some one deposite money in bank for a fix period and get a fix amount every month is it interest(Hiba) or not?
Answer
The excess on a fixed deposit is interest and strictly prohibited.
Interest monies must be given to the poor and needy who are eligible to accept Zakaat without the intention of reward. However, interest received from government institutes, eg. post office could be used to offset government taxes. Interest received from private banks cannot be used to offset taxes. It may be used to offset interest charged from the same bank.
and Allah Ta'ala Knows Best
Mufti Ebrahim Desai
FATWA DEPT.
- Answered by
- Mufti Ebrahim Desai
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