Alternatives to interest : interest and return on savings and investment

Fatawa Question

Dear Monser Kahf Assalamu Alaikum I want to know about Riba I am reading the glorious Quran and the interest mentioned there is on lending of capital and charging interest as banks do. But I want to know about the returns on savings and investment where the return is not fixed it varies from time to time on the profit that the companies make. Can we call this at interest for example the company which I work gives the policy holders bonus which is projected at 5 % but not guaranteed can v call this interest because I have heard that anything which has the element of profit and loss is not interest. And further your opinion on the insurance policy that pays guaranteed returns and also about bank interest in non Islamic countries where the economy runs on interest (banking).

Fatwa

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Publication Date

2002-08-21

Main Subjects

Financial and Accounting Sciences
Religion
Islamic Studies

Topics

• Islamic jurisprudence
• Profits
• Investments
• Savings
• Usury

No. of Pages

1

Data Type

Fatawa

Language

English

Record ID

BIM-726711

• APA
• MLA
• AMA