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Forums Forums Islamic Sharia Permissibility Of Canadian Guaranteed Investment Certificates

  • Permissibility Of Canadian Guaranteed Investment Certificates

    Posted by Shariq Zeeshan on October 13, 2022 at 10:52 am

    I live in Canada, and these days inflation is extremely high. I was wondering if it is okay to invest in a term GIC with a Canadian bank e.g. TD, CIBC, RBC, etc. (Investing in Stocks etc. has proven to be too risky and I have lost a lot of hard earned money like many others have while investing in stocks).

    As far as I understand, interest (or whatever term we want to use like e.g. profit) does not always mean Riba.

    GICs don’t make a lot of money (0.5% to 2.5% on average) but at least there is ‘some’ growth which may or may not beat the inflation but will be little bit better than money sitting idle.

    GICs, as you know, are not like savings account, but it is a term based investment (6 months term, 1yr term, 2yr term, etc) where the invested amount usually gets locked for that term.

    Please advise if the GIC investment still falls in RIBA.

    Faisal Haroon replied 1 year, 8 months ago 2 Members · 1 Reply
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