Fatwa ID: 08598

 

 

Written by Alimah Saleha Bukhari Islam                  

 

Question:

 

I recently turned 18 and received access to a foresters child trust fund (part of a government scheme), where the parent puts in money and the company invests in companies that could be completely halal or haram but I’m not sure, what should I do with this money?

 

 

 

In the name of Allah, the Most Gracious, the Most Merciful

 

Answer:

 

A Foresters Child Trust Fund (CTF) is a long-term savings product established under the UK government scheme for children born between 2002 and 2011. The permissibility of holding or benefiting from such a fund depends on the nature of the investment selected. Here is a link to one which offers a Shariah-compliant fund. [1]

 

If the Child Trust Fund is based on a pure cash savings account with no impermissible dealings, it would be permissible (halal), although any interest earnings must be purified by donating the interest amount to charity without the intention of reward.

 

However, if the fund is investment-based and the investments include shares in companies involved in prohibited activities (such as alcohol, gambling, interest-based financial institutions, or other haram industries), or interest-bearing bonds, then the investment would be deemed impermissible (haram).

 

If the fund is found to involve impermissible investments, then you should seek to transfer the amount to a halal savings option if possible. In this case, upon withdrawal – the portion derived from haram income must be purified by giving it in charity without expecting reward.

 

If, however, Foresters Financial has offered you an exclusive Shariah-compliant investment option, then on this basis the investment could be permissible (halal). Thus, it is necessary to verify with the provider the exact nature of the fund and its underlying investments so that you may proceed accordingly.

 

 

 

Only Allah (عز و جل) knows best.

Written by Alimah Saleha Bukhari Islam

Checked and approved by Mufti Mohammed Tosir Miah

Darul Ifta Birmingham

 

 

 

 

 

 

 

 

[1]  https://qa.foresters.com/en-gb/savings/child-trust-fund/matured-ctf/best-of-both