Investment bonds

26-8-2002 | IslamWeb

Question:

Is the interest from bonds considered Halal or Haram?

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Answer:

Praise be to Allah, the Lord of the World; and may His blessings and peace be upon our Prophet Muhammad and upon all his Family and Companions.

Shahadat al-Istithmar (bonds) are documents that prove the rightful ownership of an amount that is deposited in a given bank. This amount is subjected to the loan system and its regulations and rules. They are of three types A, B and C. The question here is about type B. These bonds have a current return; their period is limited to a given number of years. The owner of these bonds gets the interests he deserves each six months and the value of the card is fixed until the end of the period.
This is unlawful as it is pure Riba. For more details, please read Fatawa: 81375.
Allah knows best.