Is Interest Paid By Banks In Saving Accounts & Fixed Deposits Riba Or Sood?
Respectfully my understanding is different. Interest rate in my saving account is less than 1%. However, Cost of Living Adjustment (inflation) for this year was 3.1 %.
Walaikum Assalam, I think CPI applies, CPI measures inflation. But, Let’s keep it simple and try to avoid all the technical jargon. For a moment ASSUME, the scenario below is true: A person has $100 in a savings account and earns $1 at the end of the year. Even after earning $1, due to inflation during that same year his purchasing power goes down to $98. Under the above scenario, would that $1 earned in the savings account be considered RIBA? Thank you.