Fixed deposit is allowed on the clause that at the end of the period, on interest is accrued. It's MIMO: Money In Money Out.

Fixed deposit is allowed on the clause that at the end of the period, no interest is accrued. It's MIMO: Money In Money Out.

At the heart of the Islamic prohibition of usury (Riba) is the maxim that if you do not plant, you cannot reap. This constitutes a rejection of the false claim to a ‘time-value’ of money. Money by itself cannot increase over time without any input of labor, or without the risk (of loss or of gain) inherent in an authentic business transaction.

The blessed Prophet declared that any transaction involving an exchange of ‘money’ for ‘money’ must be an equal exchange, i.e., with no difference in amount of money exchanged. He declared that an unequal exchange (that would open the door for money to increase over time) would be Riba. Islam also insists that all business transactions must involve risk – and hence ‘profit’ or ‘loss’. Allah Most High can then intervene to distribute and redistribute wealth by taking from some and giving to others. In this way the rich would not remain permanently rich, and the poor would not be imprisoned in permanent poverty

In his masterpiece entitled ‘Merchant of Venice’, William Shakespeare likened Riba or usury to a ‘pound of flesh’. And in a dream Prophet Muhammad saw the moneylender exposed as a ‘bloodsucker’ since he was standing in a river of blood. We noted earlier that the Prophet cursed “all four”, and declared that “they were all equally guilty—the ones who ‘took’ Riba, ‘gave’ Riba, ‘recorded the transaction’, and ‘the two witnesses’.” Whoever dies with the curse of a Prophet upon him can never escape the hellfire. The Qur’an itself declared that the moneylender would be punished with eternal hellfire:

“Those who devour usury will not stand (before their Lord for Judgment) except as stands one whom Satan by his touch hath driven to madness.That is because they claim that: ‘Business is like lending on interest,’ but Allah hath permitted business and forbidden usury. Those who after receiving direction from their Lord, desist, shall be pardoned for the past; their case is for Allah (to judge); but those who persist (in claiming the interest due from fixed deposits or other such loans on interest) are Companions of the Hellfire; they will abide therein (forever).”
(Qur’an, al-Baqarah, 2:275)

What, then, is the status of someone who makes a ‘Fixed Deposit’ with his money in a bank or any other financial institution? It should firstly be clear that he has not gifted the money. It must also be recognized that he has not entered into a ‘business’ transaction since he is guaranteed the return of his money plus an additional amount. There is no risk. There is no possibility of loss. And hence that is not business! In fact, in making a ‘Fixed Deposit’, he has lent his money on interest (Riba), and has hence become a cursed moneylender.

Saudi Arabia the Islamic HQ of the world has been selling Oil at run away prices, the price of oil and gas has for no justifiable reasons been hiked and Saudi Arabia has been raking in the dollars at the expense of many poor countries. Is this not a violation of Riba or whatever?

I guess it doesn't matter so long as they make the money from infidels?

What a concept!

abbeydot: Salam everyone,

Due to the emphasis on avoiding Riba, I have always stayed away from interests on my savings account giving it out to Charity when i feel it is getting close to 500 naira. Of late I have been thinking of growing my money and some people say FIXED DEPOSITS are allowed while some say no. Pls can anyone with a good Islamic Finance Background enlighten me on this. Thanks

Regards,
Ma Salam

№ be una pple dey govt. Way dey steal moni even the one way dem no save atal! Moslims keep fooling themselves! Especially the Boko's of the North.

Fixed deposite is nt aloud in Islam,because Bank make profit wit it dat is y it is nt aloud in Islam
Reason: you dnt no d busines dat d bank use ur mony 4,may b dey use it 4 gamblin or 2 promote gulder or star whic is Haram in Islam. Masalam

One thing dat is certain is dat conventional banks usaully make money through "haram & halal" means.This is an ambuity matter so just 4get about any fixed deposit wit conventional banks in order 2 b free 4rm any sin.

sure thing[img]http://www.50centloseweight.com[/img]

Ironi:


Saudi Arabia the Islamic HQ of the world has been selling Oil at run away prices, the price of oil and gas has for no justifiable reasons been hiked and Saudi Arabia has been raking in the dollars at the expense of many poor countries. Is this not a violation of Riba or whatever?

I guess it doesn't matter so long as they make the money from infidels?

What a concept!

The HQ of Islam is the Almighty Allah and His Prophet which The Noble Quran and Hadith represent respectively.
There are a lot of things the non-Muslims do not understand which eventually becloud their sense of reasoning all the time Islam is being explained.

^I'll say...

fesse: So many issues with this "religion of peace"

Islam is a detailed religion. You're not a Muslim, so don't develop headache on matters that dont concern you. Islam is a way of life.

davidylan:

ridiculous "sign of the last hr" . . . lending money out for profit is as old as over 2000 yrs ago! Even the word "usury" is way older than Mohammad himself . . . so what exactly was this "sign of the last hour"?

Understand the context first before commenting. If you don't believe, silence is the best for you. The context is saying that when usury/interest is so common ie the advent of conventional banking system has proven what Prophet Muhammad has said. How old is conventional banking system?

MRMICKMEN: NOOOO a muslim cannot use fixed deposit its haram according to S.A.W. use the money to sponsor jihad and boko haram and heaven is yours. hypocritical idiot

dull mind

scopusng: Foo.ls, shine yah eyes op

Of course to you we are fools
A lot of people much smarter than you with well-recognised achievements believe in God and they still go around quietly

CHESSBOARD:

U need my address for tutorial??..first class I tell you,
And you Muslims I can help you open it on ur behalf .

Tell us here please

fesse: So many issues with this "religion of peace"

In Islam, we have rules because we obey the injunction of God
Some other religions allow people to do whatever with sometimes strange outcomes

sharpman1:

That is the irony in Islamic Banking / Finance.

In it's strictest form, fixed deposit is not allowed as the depositor is earning interest on an investment. Islamic banking is clearly against earning any form of fixed interest or any interest for that matter.

But in my opinion, whether you call it interest or profit.......it is simply an addition to your investment. So i believe Islamic banking is not different from the conventional banking.....its just a case of changing names while the substance is the same.

There are significant differences
1. If I lend money to somebody, my expected return is fixed, whether that person makes a huge profit or suffers a loss
2. I don't care what is done with my money

In Islamic banking, if I we are into profit sharing,we would also share losses in the same ratio. So the addition is not guaranteed
I will not allow my money to be used to finance any non-halal business

thisisayus: № be una pple dey govt. Way dey steal moni even the one way dem no save atal! Moslims keep fooling themselves! Especially the Boko's of the North.

I looked at your posts and I advise that you free your mind of the misconceptions that you have allowed hateful people to fill it with
You will be happier
Politically - Jonathan is not a Muslim and he runs the government of today
As for stealing money -we know there are bad eggs and in Islam if you steal you must (1) return the money and (2) seek forgiveness and (3) determine not to do it again
All the 3 are required for forgiveness. So any muslim who steals will face the music
However this thread is not really likely to be of interest to those who steal, making their money non-halal
The OP does not want to grow halal income in a non-halal way

Ironi: Saudi Arabia the Islamic HQ of the world has been selling Oil at run away prices, the price of oil and gas has for no justifiable reasons been hiked and Saudi Arabia has been raking in the dollars at the expense of many poor countries. Is this not a violation of Riba or whatever?

Is Saudi the only member of OPEC
And are all members of OPEC Muslim countries?
And does OPEC account for up to 50% of world crude oil sales?
And how is Saudi Arabia supposed to sell crude oil at a cheap price to poor countries while others sell at market price
and what is meant by poor?
Some poor countries are poorer than their leaders. So who benefits from this difficult-to-administer price discrimination which may lead some "poor countries" demanding more than they require and selling the excess elsewhere at market price

Ironi:
I guess it doesn't matter so long as they make the money from infidels?

Which infidels? Are you talking about the infidels mentioned in the Bible about those of us who are not Christians which you are enjoined "not to yoke yourself with?"
In any case are you suggesting that Saudi Arabia should not sell oil to non-muslims even if they need it?
Yet Saudi Aramco employs a lot of Christians
But your pastors will not tell you because you must not be allowed to see that Muslims are actually tolerant
Contrary to what you have been told
1. Saudi Arabia is not Islam
2. Muslims are allowed to trade with non-muslims

Salam Alaikum How do we compensate for inflation? There was an instance a man delivered two tippers of sand to me. I wasn't able to pay him till a year later. At the time of delivery a dollar exchanged for 163. When I paid him it was up to 195. I converted the amounts and paid him the difference because the value of Naira had changed. So instead of paying him 21,000 I divided 21k by 165 then multiplied the answer by 195 so he can still have the same purchasing power.
Now I have a fixed deposit for a bank guarantee and after one year the guarantee expires and I receive 500k additional. Is this money Riba? Please provide hadith and Ayat if possible.