Banking: Lifetime Monthly Payments from a Long-Term Deposit Investment Scheme

Practical Laws of Islam as per the teachings of Imam Khamenei

Banking: Lifetime Monthly Payments from a Long-Term Deposit Investment Scheme

English:

Question #1918:

There is an investment scheme whereby the customer leaves a sum of money, on a monthly basis, in a deposit account for five years untouched. At the end of the period, the bank gives the depositor an amount on a monthly basis for the rest of his life. What is the view on this type of investment?

Answer #1918:

The said transaction has no shar‘ī basis. Indeed, it is ribā-based.

-Imam Khamenei, Practical Laws of Islam, Importance and Conditions of Banking