Is The Profit On National Saving Certificates Halal?
Anam Sahib, I am not a scholar, but want to share my opinion until you get an answer from a scholar. Knowing about banking systems, to me, even keeping money in the bank would be contributing in the spread of haram business of Sood. All banks significantly invest our savings account money in giving out loans on interest. So keeping our money in the bank is like helping an illegal business. Similarly any payment or profit received from a bank would involve money earned from Sood. Although there are banks which may be more halal to keep money…That is the banks that invest solely in common stocks (not bonds) and commodities. Common stocks are like investing in business. There is some profits made from speculations, but rest is based on profit and loss in business. In addition you can invest in commodities too. You earn profit or loss based on sale of commodoties. At the end, nothing is perfect but common stocks and commodities investment is the best as there is much less or indirect involvment of interest if any. If you invest wisely with a good broker and diversify your investment, you can make 7% to 20% profit in the long run.