The ruling on depositing Money in Banks with a specified Profit
Question :
What is the ruling on depositing money in the banks with a specified profit?
Answer:
Depositing money into the bank with a specified profit is not permissible, because this agreement contains Riba. Indeed Allâh said:
"And Allah has allowed selling and forbidden Riba."And He said:
"O you who believe! Fear Allah and give up what remains (due to you) from Riba (from now on), if you are (really) believers. And if you do not do it, then take a notice of war from Allah and His Messenger. But if you repent, you shall have your capital sums. Deal not unjustly (by asking for more than your capital sums), and you shall not be dealt with unjustly (by receiving less than your capital sums)."
This amount (of interest) that the person who makes the deposit takes for the deposit contains no blessing. Allâh, the Most High said:
"Allah will destroy Riba and will give increase for Sadaqat (deeds of charity, alms, etc.)."
This type of transaction is a type of Riba An-Nasi'ah and Riba Al- Fadhl, because the person who deposits the money pays his cash to the bank under the condition that it will remain for a fixed period of time for a fixed amount of profit (i.e., interest).
Source:
The Permanent Committee
Fatawa Islamiyah, Vol. 3 Pages 381-382
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