Fatwa No : 85680
Ruling on Investment in National Savings

Ruling on Investment in National Savings

A retired person, whose pension is only two thousand rupees, has received five lakh rupees from the company. He is old and disabled, and apart from this, he has no other source of income. To increase his income, he is wondering where to invest this five lakh rupees, since nowadays no one can be trusted. The National Savings Scheme provides pensioners with 1,250 rupees on every one lakh rupees. Is this permissible or not? If it is not permissible, then what should he do?

الجوابُ حامِدا ًو مُصلیِّا ً

Investing under the mentioned institution and earning profit through it is not permissible; hence, it must be avoided. However, the inquirer may seek information from institutions affiliated with Islamic banking, learn the Shariah ruling on their methods, and act accordingly. Alternatively, if the inquirer himself purchases a house or shop with this amount and rents it out, utilizing the rent for his needs, then this course of action is more virtuous.