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Is The Profit On National Saving Certificates Halal?
I just want to know exactly that for an adult who is able to earn by doing job, if he invests his savings in natinal saving certificates or in Islamic banking saving account. Will the monthly profit received be halal for him to consume? Will the monthly profit be consider sood or not? Please give me direct answers no video link or link to other discusses. It will be preferred if Ghamidi sahab answers himself.
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3 Replies
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Is The Profit On National Saving Certificates Halal?
updated 4 years, 1 month ago
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Anam Sahib, I am not a scholar, but want to share my opinion until you get an answer from a scholar.
Knowing about banking systems, to me, even keeping money in the bank would be contributing in the spread of haram business of Sood. All banks significantly invest our savings account money in giving out loans on interest. So keeping our money in the bank is like helping an illegal business.
Similarly any payment or profit received from a bank would involve money earned from Sood.
Although there are banks which may be more halal to keep money…That is the banks that invest solely in common stocks (not bonds) and commodities. Common stocks are like investing in business. There is some profits made from speculations, but rest is based on profit and loss in business. In addition you can invest in commodities too. You earn profit or loss based on sale of commodoties.
At the end, nothing is perfect but common stocks and commodities investment is the best as there is much less or indirect involvment of interest if any.
If you invest wisely with a good broker and diversify your investment, you can make 7% to 20% profit in the long run.
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By the way, I worked with some Islamic banking or lending, I found that in the background it is still a business of Sood just sugar coated or named differently. There are some ligitimate Islamic banks who invest in business only, but their contracts are overwhelmingly in their favor and they get away with this by doing business with people who are pressed for money.
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Please see this in regards to national savings schemes:
“For the pious, it is befitting that they do not benefit from such schemes. However, if the general masses especially the orphans, widows and retired personnel who are apprehensive in investing their wealth in business ventures benefit from these schemes for their essential expenses, it is hoped that they will not be held accountable for this by their God.”
– Monthly Renaissance, September 2009. Translated Dr. Shehzad Saleem
Please also see:
Ilm o Hikmat Clip | Ghamidi.tv
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