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Can I deposit fixed money in bank for Children

Q:

Assalamualaikum Brother

I want to make my child medical student. But the fee structure is very high and beyond my reach. Currently my kid is 3 year old I have a plans to start his education with Islamic from the beginning blend with modern education.

Looking forward for his future I have plans that he becomes Quran Hafiz and future doctor in medicine. To achieve this I want to invest in mutual funds or banks a amount which grows with him and by the time he ready for his medical admission I have to pay huge amount of money back home in India nearly around 1 crore Indian rupees at this age. By the time he reaches 16 years the amount will be double nearly around 2 crores. So my question is can I deposit fixed amount to his account so when he matured same money can be used for his admission to the school management fees as I m.not a resident of that country and earn my means of livelihood from gulf countries. I can always ask my son on completion of his education it his moral responsibility to serve the community and needy people in the name of Almighty Allah as portion of his service.

Please reply me on same as this will enable me to take a firm decision.

Jazakallah

Mohammed

A:

Wa Alaykumussalam

Thank you for your question

Yes, you can save money for your child’s future in account or anywhere. If you have fixed amount and get the interest it will be Halal to use but the khums(one fifth) will have to be paid. You can either keep his money in your account or can create a new account if the Banks make for children.

According to Ayatullah al-Udhma Sayyid Ali Sistany:

Question: 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?

Answer: Yes, it is permissible, as long as you do not stipulate the conditions of interest.

Question: Is it permissible to deposit or borrow money from Muslim banks whereby the interest is either received or paid out?

Answer: It is permissible to deposit money in a bank without prior condition for interest and it is as well permissible to take interest, if the bank in which money is deposited belongs to Muslims. If it belongs to government, it is permissible to take interest provided that half of the interest is given away to poor people (Momineen of them).

https://www.sistani.org/english/qa/01220/

To read rules regarding Khums: https://www.sistani.org/english/book/48/2280/

Wassalam,

Syed Haider