The World Federation One Stop Fiqh
Search
Menu

Ask an Alim

Profit from National Saving Center Pakistan

Q:

ASSALAM O ALAIKUM…
SIR I HAVE BEEN RETIRED RECENTLY FROM PAKISTAN POST DEPTT. AND HAVE RECEIVED GOOD AMOUNT AS GRATUITY , WHICH I WISH TO INVEST IN * NATIONAL SAVING CENTRE ( GOVERNMENT DEPARTMENT)* . WHICH IS BOUND TO PAY ME INTEREST ON MONTHLY BASIS OR BIANNUALLY BASIS.. NOW I WISH TO KNOW THAT ITS INTEREST WHETHER HALAL/VALID ( ALLOWED ) OR HARAM/ FORBIDDEN FOR ME ??? IF HARAM/FORBIDDEN THAN WHAT WILL BE THE OTHER AND EASY WAY TO MAKE IT HALAL/VALID AND EXPENDABLE UPTO THE ENTIRE CONSENT AND PLEASURE OF ALMIGHTY ALLAH(JJ)………………………AN URGENT AND PROMPT BUT QUITE EASILY UNDERSTANDABLE REPLY IS HIGHLY SOLICITED…….THANKS,

A:

Wa Alaykumussalam

Thank you for your query.

According to Ayatullah al-Udhma Sayyid Ali Sistany:

You can deposit the amount in Bank and get the profit without stipulating which means you shouldn’t put a condition on them to pay the interest.

If you deposit the money in Government Muslim bank, you can get the profit but half of the profit/interest should be given away to the poor people(momineen), but if it is a Muslim Private bank and the contract is according to the Islamic Laws, then you can use all of the profit.

https://www.sistani.org/persian/qa/0944/

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/

If you have paid Khums on the actual amount which you deposited in the bank(suppose $1000), then there would be no khums on this particular amount if it remains in the bank till your next Khums year date. But the profit which comes from the actual amount and remains in your account for more than the year then Khums will be applicable to that profit amount only.

Let’s say you deposited $1000 on which you have already paid khums on, and you got $200 as a profit after one year. In this case you will have to pay khums only on this $200 that is one fifth of this amount which will be $40.

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

May Allah(swt) grant you success

Wassalam,

Syed Haider