Fatwa ID: 08876
Written by Alimah Saleha Bukhari Islam
Question:
Is it halal to put my money in fixed rate saver in bank in HSBC here in England?
The fixed interest rate now is 3.5 %
In the name of Allah, the Most Gracious, the Most Merciful
Answer:
No, it is not permissible. Fixed-rate savings accounts that guarantee a return based on interest fall under riba, which is explicitly forbidden in Islam. Allah ﷻ clearly states in the Quran:
“Those who consume interest cannot stand [on the Day of Resurrection] except as one stands who is being beaten by Satan into insanity. That is because they say, “Trade is [just] like interest.” But Allah has permitted trade and has forbidden interest. So, whoever has received an admonition from his Lord and desists may have what is past, and his affair rests with Allah. But whoever returns to [dealing in interest or usury] – those are the companions of the Fire; they will abide eternally therein. Allah has permitted trade and forbidden interest.”[1]
(Surah al-Baqarah, 2:275)
Receiving a guaranteed increase on capital without risk or business activity is one of the core definitions of riba, and it is prohibited regardless of the rate (3.5% or otherwise) or the intention behind the deposit. Placing money in such an account is not allowed, even if the intention is safekeeping or saving.
Instead, it is advisable to use a Shariah-compliant bank, such as Al Rayan or Gatehouse Bank. If no Islamic bank is available, you may opt for a basic current account (non-interest) only for holding and accessing funds. If interest is earned unintentionally then dispose of it in charity, without seeking reward.
Abu Qatadah reported: The Prophet, ﷺ, said:
“Verily, you will never leave anything for the sake of Allah Almighty but that Allah will replace it with something better for you.”[2]
(Musnad Ahmad 23074)
Abandon what is prohibited, place your trust in Allah, and you will be granted something better and rewarded for your righteousness.
References:
[1] ﴿الَّذِينَ يَأْكُلُونَ الرِّبَا لَا يَقُومُونَ إِلَّا كَمَا يَقُومُ الَّذِي يَتَخَبَّطُهُ الشَّيْطَانُ مِنَ الْمَسِّ ۚ ذَٰلِكَ بِأَنَّهُمْ قَالُوا إِنَّمَا الْبَيْعُ مِثْلُ الرِّبَا ۗ وَأَحَلَّ اللَّهُ الْبَيْعَ وَحَرَّمَ الرِّبَا ۚ فَمَن جَاءَهُ مَوْعِظَةٌ مِّن رَّبِّهِ فَانتَهَىٰ فَلَهُ مَا سَلَفَ وَأَمْرُهُ إِلَى اللَّهِ ۖ وَمَنْ عَادَ فَأُولَٰئِكَ أَصْحَابُ النَّارِ ۖ هُمْ فِيهَا خَالِدُونَ﴾
[ البقرة: 275]
[2] عَنْ أَبِي قَتَادَةَ عَنْ النَّبِيِّ صَلَّى اللَّهُ عَلَيْهِ وَسَلَّمَ قَالَ إِنَّكَ لَنْ تَدَعَ شَيْئًا لِلَّهِ عَزَّ وَجَلَّ إِلَّا بَدَّلَكَ اللَّهُ بِهِ مَا هُوَ خَيْرٌ لَكَ مِنْهُ
23074 مسند أحمد بن حنبل
Only Allah (عز و جل) knows best.
Written by Alimah Saleha Bukhari Islam
Checked and approved by Mufti Mohammed Tosir Miah
Darul Ifta Birmingham
