Miscellaneous issues about banks

Fixed deposit in bank

 

Allah Ta’ala has declared trade as Halal and interest as Haraam.  Allah Ta’ala says:

 

That is because they say: Trade is like usury, but Allah hath permitted trade and forbidden usury.  Surah Baqarah (2:275)

 

As far as depositing money in bank is concerned, the ruling is different on whether the country is an Islamic one or non-Islamic one.  In a non-Islamic country, Improper Sale (Ba’yah Fasida) is permissible, which means that in a non-Islamic country, in a transaction between a Muslim and a non-Muslim, if the Muslim gets extra money without any cheating of any kind, then it will not be considered as interest.  In an Islamic country, the same kind of transaction is an interest-based transaction and it is expressly forbidden.

 

Thus, the extra money gained from a non-Muslim financial institution in a non-Muslim country does not come under interest and can be used.

 

However, in an Islamic country, irrespective of whether the transaction is with a Muslim or someone else and whether the financial institution is Muslim or a non-Muslim one, such extra money is interest, which is Haraam and forbidden.  It is Wajib to give away that amount in charity.  You cannot use it for your own.

 

As per the Hadith recorded and mentioned by Imam Burhanuddin Farghani (May Allah shower His Mercy on him) in Hidayah, Vol.  3, Pg No: 86.

 

Taking loan from bank

 

For a very dire need, there is a possibility of taking a bank loan, but it is necessary to confirm that the need is indeed a dire one.

 

Zakaat on money kept in the bank

 

If somebody has 60 gm 755 mg gold or 425 gm 285 mg silver or its equivalent wealth/cash, which is safe from debt and on which a year has passed, then giving its Zakaat is necessary.

 

If you add your gold, silver and other wealth to the amount you have kept in fixed deposit that meets the criteria of Zakaat or if it itself meets the criteria, then as 1 year passes on it, Zakaat becomes obligatory (Fardh) on it.

 

Working in bank

 

Allah Ta'ala has declared business as Halal and usury as forbidden.  Allah Ta'ala says in Surah Baqarah, verse no. 275:

 

About bank interest, the ruling is different for Islamic counties and non-Islamic countries.  As in non-Islamic countries, Foul Sale (Ba'yah Fasida) is permissible.  If more amount is gained in dealing with a non-Muslim without resorting to any cheating or deception, etc., then it will not be called usury and it is permissible to use it.

 

In an Islamic country, the same transaction is termed as usury, which is forbidden.  As Allama Burhanuddin Farghani (May Allah Ta'ala shower His mercy on him) relates a Hadith in Al Hidayah, Vol. 3, Pg. No. 86.

 

Thus, if you want to work in a bank in India, it is allowed.