QUESTION: I went to the bank to change my money in notes to coins to be used for sadaqah, or personal spending. For example, I would like to change $50 notes to $50 in fifty cent coins. However, the bank is charging additional fee for this. Is this consider riba?

Riba
06 Feb

ANSWER: Yes, this is riba and it’s not permissible at all. 

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QUESTION: Is it permissible to exchange coins to paper money from the same currency and pay the bank 7 Euros as an exchange fee or use a machine that does the same thing but takes 10% from the coins as an exchange fee.

Riba
30 Jan

ANSWER: This is not permissible as this is clear riba.

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QUESTION: In my country, there is a system where the government will pay you to save money. The way it works is like this: you set up a saving account with the government; then you put money in it monthly; after 2 years, the government will pay you 50% of what you paid. So if after 2 years I saved 500, the government will give you 250. Is this halal?

Riba
29 Jan

ANSWER: This is totally prohibited and comes under riba.

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QUESTION: Sheikh my father has a savings account so without his consent can i give interest money from account to needy peoples.

Riba
27 Jan

ANSWER: No. This would be stealing as its not your money!

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QUESTION: I live in India. As I am working, every year we have to pay income tax. There is an option to avail tax deduction against income earned from bank savings, like if the income earned from bank saving is more than 10,000 we get some tax deduction. Is it permissible to avail this option?

Riba
24 Jan

ANSWER: No problem, if you have a savings account (providing you do not have the option of current account). You must not opt for saving accounts or riba based accounts just to escape taxes. You must dispose off any interest that you get to cleanse your wealth of this haram money, without anticipating any reward […]

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QUESTION: I have heard from a sheikh that if u pay interest it is not a major sin but still a sin but if u gain interest it is a major sin is he right

Riba
23 Jan

ANSWER: No, absolutely not! This so called sheikh doesn’t know what he is talking about! It’s a major sin, whether you pay it, receive it, witness it or record it. They are all cursed and in equal in the curse of Allah as stated by the prophet salla allahu alaihi wa sallam.

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QUESTION: Is it Halal to get membership in shopping store (like Costco) where they sell bulk items at discounted prices. One has have to pay $60 per year to get the regular membership. For $120 exclusive membership you get 2% cash back annually. Without Membership you cannot shop there. Is this cash back riba? If it is riba, then is regular membership without cash back halal?

Halal/Haram Matters, Riba
08 Jan

ANSWER: The cash back is riba as you are getting it in exchange of a subscription. The 60$ you are paying is also ambiguous as you may pay it and not get any discounts because you didn’t buy anything and you may get much more than what you had initially paid them. Therefore, this is […]

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QUESTION: Shiekh, My father want to me to do all his bank works as he didnt have much time , He tell me to do a fixed deposit of xyz amount , invest in Sip, ppf etc. I tell him so many times that dealing in riba is like engaging in war with Allah but he ignores me what to do should i listen to him?

Fiqh of the family, Halal/Haram Matters, Riba
01 Jan

ANSWER: You must not obey him in this regard as there is no pleasing or obedience to anyone at the cost of displeasing and disobedience to Allah. Try to be diplomatic and explain to him that you love him and you would do anything for him but you can’t disobey Allah.

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QUESTION: My friend is having a business.he told me to invest some amount of money to him and for that money i invest he will gave me a fixed profit every month .is this come in riba ….. The business he is doing is 100%halal

Halal/Haram Matters, Islamic economy, Riba
01 Jan

ANSWER: This is totally prohibited and its riba, one of the major sins in Islam. You must be part of both profit and loss. You can get a fixed percentage on the capital you invested and not a fixed amount. 

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QUESTION: If we put riba from the bank account in a separate bank account and give it to other people who ask for money (borrow money), especially people who usually dont return the money to us(If some chance they return we give it to others like them who usually dont return money), and not use for ourself, will it be permissible to do so?

Riba
27 Dec

ANSWER: This is not permissible as this is using the interest money as if it is yours. You must give it immediately to the poor and needy muslims as a form of cleansing your wealth and not to protect it by lending people! 

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