❀ Shar‘i Ruling on Profits from National Savings Schemes ❀
✦ Taken from: Fatāwā ʿUlamā’-e-Ḥadīth, Kitāb al-Ṣalāh, Vol. 1
❖ Question:
Is it permissible to earn profits through National Savings Schemes?
❖ Answer:
❖ General Ruling on National Savings Schemes:
National Savings Schemes offer various types of accounts, some of which provide fixed monthly or annual profit.
Such fixed profit falls under the category of Riba (usury/interest), which is explicitly prohibited in Islam.
❖ About the P.L.S (Profit and Loss Sharing) Account:
Some scholars regard P.L.S accounts as a permissible form of Muḍārabah (partnership), since they are claimed to be based on profit and loss sharing.
However, in practice, these accounts are still part of an interest-based banking system.
❖ Avoiding Interest-Based Systems:
In our view, since banks operate fundamentally on an interest-based system, it is necessary to avoid all forms of dealings with them, whether it involves a P.L.S account or any other savings scheme.
✔ Summary:
① National Savings Schemes or bank-based profit models that guarantee fixed returns are forms of Riba and thus prohibited (ḥarām) in Islam.
② P.L.S accounts, despite their appearance of legitimacy, remain part of a riba-based framework, and should therefore be avoided.
③ It is more prudent and religiously sound to abstain completely from these usurious dealings.
📌 Reference:
Based on Islamic teachings and foundational principles of Islamic jurisprudence (Fiqh)
