Interest Free Edgar’s Account with an Account Protection Plan

As salām ʿalaikum wa raḥmatullāhī wa barakātuhū

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

Respected Brother in Islām,

It is crucial for us to recognize the gravity and warnings articulated in the Qur’ān and various Aḥādīth with regards to involvement in interest-related transactions. The Qur’ān clearly declares Ribā (interest/usury) as Ḥarām:

وَأَحَلَّ ٱللَّهُ ٱلۡبَيۡعَ ‌وَحَرَّمَ ٱلرِّبَوٰا (البقرة:275)

Translation: “Allāh has permitted trade and has forbidden interest.”

Rasūlullāh ﷺ has cursed those engaged in dealing with Ribā. The following Ḥadīth has been recorded in Ṣaḥīḥ Muslim on the authenticity of Jābir رضي الله عنه :

عَنْ جَابِرٍ، قَالَ: لَعَنَ رَسُولُ اللهِ صَلَّى اللهُ عَلَيْهِ وَسَلَّمَ آكِلَ الرِّبَا، وَمُؤْكِلَهُ، وَكَاتِبَهُ، وَشَاهِدَيْهِ، وَقَالَ: هُمْ سَوَاءٌ (صحيح مسلم 3/ 1219)

Translation: Narrated from Jabir رضي الله عنه that Rasūlullāh ﷺ cursed the one who accepts usury, the one who pays it, the one who records it and the two witnesses to it saying that they all are alike.

Consequently, opening a six-month interest free Edgars account will be impermissible due to the following reasons:

- The account protection plan will be deemed as a type of insurance, and all conventional types of insurance are not permissible.

- Any outstanding balance beyond six months will result in interest charges which is strictly prohibited in Islām.

And Allāh Taʿālā knows best.