AskImamDarul Iftaa Mahmudiyyah (AskImam)

Saving accounts

· 15 Muharram 1441 AH1 min readFatwa 43146English
Finance and Commerce

Question

Is it permissible to hold your money in checking/saving accounts that generate an annual percentage yield?

Answer

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

In principle, it is not permissible for one to open a cheque or savings account that generates interest upon ones deposit.

Alternatively, one should search for reliable Shariah compliant based cheque or savings account. One can also open a current account or any other account which is interest free.[1]

And Allah Ta’āla Knows Best

Ahmed-Ur-Rahmaan Ibn Mufti Mohammed Patel (Rahmatullah Alaih)

Student Darul Iftaa

Azaadville, Johannesburg, South Africa

Checked and Approved by,
Mufti Ebrahim Desai.

References (Arabic / Urdu sources)

فتاوى عثمانى (ج2 ص267/273) [1]

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Answered by
Ahmed-Ur-Rahmaan Ibn Mufti Mohammed Patel (Rahmatullah Alaih)
Checked & approved by
Mufti Ebrahim Desai
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