Dar Al Iftaa: Putting money in bank certificates is a legitimate investment

Are bank investment certificates with fixed interest halal or haram.. bearing in mind that we are outside the country and do not know where to put our money?.. A question was received by the Egyptian House of Ifta, during a live broadcast conducted by the house on its official page on the social networking site “Facebook”, and it answered the question During the live broadcast, Dr. Mohamed Abdel Samie, Secretary of Fatwa at the Egyptian Dar Al Iftaa.

In his answer to the question, Abd al-Samie confirmed that depositing money in bank certificates is a type of investment and financing, saying: “I invest my money and finance the bank’s business and projects so that it works on its projects and gives me a measure of the profit of these projects. Whether you are inside the country or outside the country, or you have a place to put your money, or otherwise, bank certificates are permissible and their returns are permissible, God willing.”

Judgment of investment certificates

And the Egyptian Dar Al-Iftaa answered, on its website, earlier, a question that reads: “What is the ruling? Investment certificates?”, Saying: “What is the fatwa: Depositing in banks, savings books, investment certificates, and the like is considered a part of the new financing contracts, not loans that draw the forbidden benefit, and it has nothing to do with usury, and that its profits are not forbidden; It is permissible to take it and use it legally.”

Are investment certificates forbidden?

In detailing the fatwa, Dar al-Iftaa said: “The benefits of banks, savings books, and investment certificates are among the different matters in their depiction and adaptation among contemporary scholars, and on which the fatwa settled is that depositing in banks, savings books, investment certificates, and the like is from the category of modern financing contracts, not loans that bring in forbidden interest. It has nothing to do with usury, which has to be investigated and acted on: the permissibility of creating new contracts if they are free of deception and harm, and this is what the Egyptian Banking Law No. 88 of 2003 AD, and its executive regulations issued in 2004 AD.

And the Egyptian Dar Al Iftaa concluded: “And the ruling of the ruler raises the dispute, so profits are not forbidden, because they are not interest on loans, but rather they are financing profits resulting from contracts that achieve the interests of their parties.

Investment certificates in Banque Misr and the National Bank

It was announced by the National Bank of Egypt andsuck bankR regarding issuing a new one-year savings certificate with a return of up to 25% to be spent at the end of the certificate period, or with a return of 22.5% to be spent monthly, as of 01/4/2023, and the new savings certificate is issued in denominations of 1,000 pounds and its multiples, and the bank is targeting from this new certificate Natural persons, adults and minors (Egyptians and foreigners).

The interest is also calculated from the day following the purchase of the certificate directly, and it is possible to borrow with its guarantee during the period. It is not permissible to recover the value of the certificate before the lapse of 6 months starting from the working day following the day of purchase. The certificate is also retrieved at the end of its period at its full nominal value and can be recovered before that date according to the recovery values. prescribed by the bank, noting that all certificates are available through all branches of the National Bank of Egypt, as well as through the banking internet and the banking mobile application, as well as through the bank’s call center 19623.