Is Interest Paid By Banks In Saving Accounts & Fixed Deposits Riba Or Sood?
Question Is it allowable to: -keep money as a fix deposit for five years in the bank and received a specific percentage on that amount and -keep the amount in Pakistan government policy Qawmy Bachat Scheme? Answer By Dr. Khalid Zaheer Interest offered by the conventional banks is prohibited and a Muslim should avoid taking it unless his circumstances are compelling. Qaumi Bachat Scheme too comes under the same category. However, if the government offers a regular payment to the old people in the form of pension etc taking it would be permissible no matter how revenue is generated.
CPI applies to you 100% but it does not apply to TVM. TVM or the APR already factors in inflation, pls. see my previous comment where I explained APR and Nominal interest. Also, note CPI is not the only index out there that depends on inflation, if you look at my screenshot copied above you will notice other index also. Why TVM matters? It is your “money” deposit we are discussing here and how “inflation” relates to it. Thanks,