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Can A Muslim Keep A Fixed Deposit Account?

Salam everyone,

Due to the emphasis on avoiding Riba, I have always stayed away from interests on my savings account giving it out to Charity when i feel it is getting close to 500 naira. Of late I have been thinking of growing my money and some people say FIXED DEPOSITS are allowed while some say no. Pls can anyone with a good Islamic Finance Background enlighten me on this. Thanks

Regards,

Ma Salam

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33 answers

Is Saudi the only member of OPEC

And are all members of OPEC Muslim countries?

And does OPEC account for up to 50% of world crude oil sales?

And how is Saudi Arabia supposed to sell crude oil at a cheap price to poor countries while others sell at market price

and what is meant by poor?

Some poor countries are poorer than their leaders. So who benefits from this difficult-to-administer price discrimination which may lead some "poor countries" demanding more than they require and selling the excess elsewhere at market price

Which infidels? Are you talking about the infidels mentioned in the Bible about those of us who are not Christians which you are enjoined "not to yoke yourself with?"

In any case are you suggesting that Saudi Arabia should not sell oil to non-muslims even if they need it?

Yet Saudi Aramco employs a lot of Christians

But your pastors will not tell you because you must not be allowed to see that Muslims are actually tolerant

Contrary to what you have been told

1. Saudi Arabia is not Islam

2. Muslims are allowed to trade with non-muslims

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You will be happier

Politically - Jonathan is not a Muslim and he runs the government of today

As for stealing money -we know there are bad eggs and in Islam if you steal you must (1) return the money and (2) seek forgiveness and (3) determine not to do it again

All the 3 are required for forgiveness. So any muslim who steals will face the music

However this thread is not really likely to be of interest to those who steal, making their money non-halal

The OP does not want to grow halal income in a non-halal way

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1. If I lend money to somebody, my expected return is fixed, whether that person makes a huge profit or suffers a loss

2. I don't care what is done with my money

In Islamic banking, if I we are into profit sharing,we would also share losses in the same ratio. So the addition is not guaranteed

I will not allow my money to be used to finance any non-halal business

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Some other religions allow people to do whatever with sometimes strange outcomes

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A lot of people much smarter than you with well-recognised achievements believe in God and they still go around quietly

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The HQ of Islam is the Almighty Allah and His Prophet which The Noble Quran and Hadith represent respectively.

There are a lot of things the non-Muslims do not understand which eventually becloud their sense of reasoning all the time Islam is being explained.

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One thing dat is certain is dat conventional banks usaully make money through "haram & halal" means.This is an ambuity matter so just 4get about any fixed deposit wit conventional banks in order 2 b free 4rm any sin.

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Saudi Arabia the Islamic HQ of the world has been selling Oil at run away prices, the price of oil and gas has for no justifiable reasons been hiked and Saudi Arabia has been raking in the dollars at the expense of many poor countries. Is this not a violation of Riba or whatever?

I guess it doesn't matter so long as they make the money from infidels?

What a concept!

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Fixed deposit is allowed on the clause that at the end of the period, no interest is accrued. It's MIMO: Money In Money Out.

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Fixed deposit is allowed on the clause that at the end of the period, on interest is accrued. It's MIMO: Money In Money Out.

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Rulings on deposting money in banks as per the view of Grand Ayatullah Ali Sistani:

Q62: What is the ruling on depositing money in banks sponsored by Muslim and non-Muslim governments, with the stipulated condition of receiving interest?

A: Depositing in banks of non-Muslim countries is permissible in every case, even if it is under the stipulated condition of obtaining interest. As for depositing in government banks of Muslim countries under the stipulated condition of obtaining interest, then it is prohibited. But, if it is without this condition, then the issue is free of interest (riba) but it is not permissible to spend the acquired money without referring to al-hakim al-shar'ie (legal expert in islamic jurisprudence) or his representative. (FM, p. 405)

Q63: Is there a difference here between the principal and interest which the banks (in Muslim countries) give to the depositor?

A: No, there is no difference between them. One is not permitted to spend from anything taken from government banks in Muslim countries except by referring to al-hakim al-shar'ie or his representative. (FM, p. 405)

Q64: If I know that the bank will give me interest even without stipulating the conditions, is it permissible for me to deposit in a savings account that takes the form of a term-deposit?

A: Yes, it is permissible, as long as you do not stipulate the conditions of interest. (FM, p. 406)

Q65: Is it permissible to take interest from unbelievers, especially for those who live in their countries?

A: Yes, apparently one is allowed to take interest from the unbelievers, whose property is not honored. God knows best. (MMS, p. 27, Q49)

Q66: A national bank (in a Muslim country) offers a project to its clients in which a person deposits a sum of money in the order of 1,000 dirhams as a deposit which can be withdrawn at any time. It announces that after a period of time, a lottery will be drawn and the bank will grant a specific gift to the investors. Is it permissible to deposit with this intention?

A: Depositing with the condition of a gift is usury and therefore prohibited. By condition is meant to make the deposit with the requirement that the bank should give the gift. But the mere knowledge that the bank will grant it (gift) does not harm the permissibility of investing and the lawfulness of the granted gift. God knows best. (MMS, p. 36, Q76)

Q67: A person does not own a house to reside in. Is it permissible for him to borrow from government banks with interest for the purpose of building his own house?

A: It is not permissible to borrow with the condition of interest for any reason, but it is permissible to take the money from it (bank), though not with the intention of a loan, and to legitimize its spending by referring to al-hakim al-shar'ie or his representative. (FM, pp. 406-7)

http://sistani.org/index.php/biography/index.php?p=251364&id=50&pid=2440

Question :

If a Muslim tries to get from the bank’s cash dispensing machine some of his own money and more money than what he had asked for is dispensed, is he allowed to take the extra money without the bank knowing about it?

Answer :

It is not allowed.

read more on related issues:

http://www.sistani.org/index.php?p=616687&id=1132

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Sorry to spoil the plan but when thinking of business, think about Profit then People.

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That is the irony in Islamic Banking / Finance.

In it's strictest form, fixed deposit is not allowed as the depositor is earning interest on an investment. Islamic banking is clearly against earning any form of fixed interest or any interest for that matter.

But in my opinion, whether you call it interest or profit.......it is simply an addition to your investment. So i believe Islamic banking is not different from the conventional banking.....its just a case of changing names while the substance is the same.

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Fixed deposit is allowed in saving the money on the condition that at the end of the fixing period (expiration of contract) there is no interest to by added to the bank on the fixed account. i.e if N200 was fixed for the months, then the same N200 should be paid without adding a kobo on it as interest.

Fixed monies are used by islamic banks to borrow others who are also to return same without paying the bank interest.

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Your views and those of Humblesoul represent the moderate and extreme positions that have remained the bane of mankind's attempt to apply purely religious concepts on every fact of life. Apply Humblesoul's extreme position on moral issues and the resultant effect could be anything but orderly.

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Foo.ls, shine yah eyes op

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Seriously?

Now this is something.

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Nice and tidy please.

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are u kiddin me?

blinkin . . . . . .

wat kind of a muslim am i oooooo

i nid 2 know d rules of Islam fast

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NOOOO a muslim cannot use fixed deposit its haram according to S.A.W. use the money to sponsor jihad and boko haram and heaven is yours. hypocritical

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WHAT ARE U WAITING GO OPEN ACCOUNT WITH JAIZ BANK, LEAVE ALL THESE YEYE RIBA BANKS.

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@Poster

Of course yes all he has to know is talk with the bank on the interest issue and thats all or better stl give the interest out as sadaka!

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Erm, I opened an Isa account because I'm a student n they put on an interest of 8p or 9p depending on how much I put n how long its been there. O.o

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Salam everyone,

The intention of keeping money in bank has to be purified first as to the fact that people do that because of many reasons. Islam against interest and one should try and stay away from as much as one can. Prophet muhammad stated it as one of the sign of last hour that the usury/interest will be so much common that hardly that even muslims could not escape it. This is evidence by many circumstances we find ourself today, for example loan facilities from bank and financial organizations.

Now, keeping a fixed deposit is like normal account if the intention is purified from enjoying the interest accumulation. This could probably, for future use or any other genuine reasons. Wallah Alaam.

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Bro Remii, thanks for the update, May Allah keep us on the right path, salam

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Bro Humblesoul

I visit Middle East regularly, Qatar and UAE to be precise and I know that Islamic banks there have fixed deposit account for their customers, instead of blanketly shutting Muslims away from banks there is need to find out the Islamic way of running the accounts.

Like I stated above the term "fixed" is flexible and you could get less or more than agreed amount depending on business outcome. The agreed amount would then serve as a means of making the bank strife to encourage your repeat business,

The prophet of Islam, (SAW) encourage us to learn and expand our depth of awareness, Allahu alam.

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At the heart of the Islamic prohibition of usury (Riba) is the maxim that if you do not plant, you cannot reap. This constitutes a rejection of the false claim to a ‘time-value’ of money. Money by itself cannot increase over time without any input of labor, or without the risk (of loss or of gain) inherent in an authentic business transaction.

The blessed Prophet declared that any transaction involving an exchange of ‘money’ for ‘money’ must be an equal exchange, i.e., with no difference in amount of money exchanged. He declared that an unequal exchange (that would open the door for money to increase over time) would be Riba. Islam also insists that all business transactions must involve risk – and hence ‘profit’ or ‘loss’. Allah Most High can then intervene to distribute and redistribute wealth by taking from some and giving to others. In this way the rich would not remain permanently rich, and the poor would not be imprisoned in permanent poverty

In his masterpiece entitled ‘Merchant of Venice’, William Shakespeare likened Riba or usury to a ‘pound of flesh’. And in a dream Prophet Muhammad saw the moneylender exposed as a ‘bloodsucker’ since he was standing in a river of blood. We noted earlier that the Prophet cursed “all four”, and declared that “they were all equally guilty—the ones who ‘took’ Riba, ‘gave’ Riba, ‘recorded the transaction’, and ‘the two witnesses’.” Whoever dies with the curse of a Prophet upon him can never escape the hellfire. The Qur’an itself declared that the moneylender would be punished with eternal hellfire:

“Those who devour usury will not stand (before their Lord for Judgment) except as stands one whom Satan by his touch hath driven to madness.That is because they claim that: ‘Business is like lending on interest,’ but Allah hath permitted business and forbidden usury. Those who after receiving direction from their Lord, desist, shall be pardoned for the past; their case is for Allah (to judge); but those who persist (in claiming the interest due from fixed deposits or other such loans on interest) are Companions of the Hellfire; they will abide therein (forever).”

(Qur’an, al-Baqarah, 2:275)

What, then, is the status of someone who makes a ‘Fixed Deposit’ with his money in a bank or any other financial institution? It should firstly be clear that he has not gifted the money. It must also be recognized that he has not entered into a ‘business’ transaction since he is guaranteed the return of his money plus an additional amount. There is no risk. There is no possibility of loss. And hence that is not business! In fact, in making a ‘Fixed Deposit’, he has lent his money on interest (Riba), and has hence become a cursed moneylender.

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Fixed deposit is allowed with a clause in Islam. 

1. The predetermined interest rate is expected but should not be rigidly binding. The bank would work towards achieving that profit, if they make less you would have to take less if they make more you should get more

2. The bank must make profit through Halal means.

3. So if the terms are as stated above among others, yes you can invest.

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2, Does the company know the amount of profit they will make before giving you the rate of interest from the onset?

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fixed deposit is allowed in islam.

the reason why its allowed is this.

the money has to stay for some certain period.

during this period, the bank use the money for business and the return they give u is ur share from the profit of the business.

so u can put ur money there.

masallam

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