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Investment Account

Last updated: 17th February 2007
Question ID: #3857
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ASA,
I am interested in opening an investment account with Lloyds TSB. They offer guaranteed return of at least 15% gross (2.83% AER) over 5 years. The returns are linked to the performance of shares in the FTSE 100 Index. The minimum investment is for 5 years. My query is that they can guarantee a no risk investment. Would this amount to interest or usary? Is this investement going to be halaal or haraam?

JK.



Bismillah



Al-jawab billahi at-taufeeq (the answer with Allah's guidance)





The investment account you mentioned above is called guaranteed investment account. This type of investment is Haram as it involves Riba (interest). Hence, to open any investment accounts with any conventional banks will not be permissible.







And Only Allah Ta'ala Knows Best.

Mufti
Answer last updated on:
15th May 2012
Answered by:
Ulamaa ID 04
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Location: London