Is interest a compensation for inflation ? : getting interest on bank deposits because of decline in value of money

Fatawa Question

As Salamu Alaykum wa Rahmatu Allah : I would like to ask you (Jazakum Allah khayran) about banking transactions and the system of interest. I’m placing some money in a deposit account, because I think that it is the safest way of keeping money and getting some returns on it, at least to compensate for the decline in monetary value and I also said to convince myself (after all banks are not poor). Does this kind of practice look convincing according to Islam ? Please give me a firm answer. Thank you

Fatwa

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Publication Date

2002-06-19

Main Subjects

Economics & Business Administration
Financial and Accounting Sciences
Religion
Islamic Studies

Topics

• Islamic jurisprudence
• Islamic economics
• Financial transactions
• Morocco
• Bank deposits
• Usury
• Preservation of Property
• Islamic Banks
• Cash value

No. of Pages

1

Data Type

Fatawa

Language

English

Record ID

BIM-724016

• APA
• MLA
• AMA