Source: http://qa.muftisays.com/?3857
Question ID: #3857
 
Question: Investment Account
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.
 
 
Answered by: Ulamaa ID 04 (London)
Date: 15/05/2012 23:21pm

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 Qamruzzaman

London, UK
 
www.MuftiSays.com