zakat on fixed deposit

Question:

Assalamu alaikum,

I have 2 types of Fixed Deposit and 1 Investment with Shariah Based organization:

1. In a Shariah Based Islamic bank my fixed deposit amount matures after 3 months or 6 months or 1 year and then get auto renewed for another 3 / 6 months or 1 year. I draw the Munafa (Profit) only when I am in need or to pay my zakat.

2. In a Shariah Based Islamic bank I am maintain a Mudaraba Term Deposit Scheme, where I am depositing a fixed amount monthly and after 5 years InshaAllah I will be entitled to get the whole amount with Munafa (Profit).

3. I am investing in MCCA Islamic Finance (Australia) and I am getting profit amount monthly and the profit amount I get it changes / varies, not fixed every month. Usually don’t withdraw money if not needed.

-Till now I am paying zakat for current balance including all these fixed Deposits in my bank account.

My question is :
1. Could you please kindly share the fatwa / ruling for fixed deposit in an Islamic Shariah Bank?

2. How would I calculate my Zakat for these Fixed Deposits & Investments?

3. Are all these profits haram for me?

Jazakallahu Khairan

Answer:

بِسْمِ اللهِ الرَّحْمنِ الرَّحِيْم

In the Name of Allah, the Most Gracious, the Most Merciful.

1) In principle, it is permissible to deposit one’s money in a genuine Sharīʿah compliant bank in a legitimate Sharīʿah compliant fixed deposit scheme. We cannot, however, comment on any specific product unless we have approved it ourselves.

2) As for calculating zakāt on the money in the fixed deposit account, it will be treated just like any money that you have, and so you will evaluate it along with all your other zakatable assets and give 2.5% of it in zakāt[1]

With regards to zakāt on the Mudarabah Term Deposit Scheme, zakat will be calculated proportionately to your contribution and your share of the profit. So, for example, if a car was bought for $1000, your contribution to that was $500, the car is worth $2000 and your share of the profit is 25%, you must pay zakat on $750. $500 of that is your investment and $250 is your 25% share of the profit. This is because it will fall under the ruling of merchandise.[2]

As for zakāt on your investments, we cannot issue a fatwā regarding it until you provide us with more precise details regarding the nature of your investments and what exactly your money is being invested in.

3) We cannot comment on the profits of any bank product being ḥalāl or ḥarām unless we examine that specific product ourselves.

And Allah Ta'ala knows best.

Mufti Muhammad Haris Siddiqui
14/06/2022

Checked and approved by:
Mufti Faizal Riza

Darul Ifta Australia
www.fatwa.org.au

___________________________________

[1] المحيط البرهاني في الفقه النعماني 2/ 240

فنقول: مال الزكاة الأثمان، وهو: الذهب والفضة وأشباهها، والسوائم وعروض التجارة فنعتبر ذلك نوع نذكر فيه مسائله والأحكام المتعلقة به، فنبدأ ببيان أحكام الذهب والفضة وأشباهها، لأن الحاجة إلى معرفة ذلك أمسّ فنقول

[2] المحيط الرضوي ٦/٢٤٨

اشترى بألف المضاربة جارية تساوي ألفين فحال الحول و لا مال لهما غير ذلك فعلى رب المال زكاة ثلاثة أرباعها ألف رأس ماله وخمسمائة حصته من الربح و على على المضارب زكاة ربع

خزانة الأكمل ٣/٢٢٦

دفعه ألفا مضاربة بالنصف فاشترى بها جارية تساوي ألفين و حال الحول ولا مال لهما غيرهما فعلى رب المال زكاة ثلاثة أرباع الجارية

رد المحتار ٥/٤٥١

واستثنوا من اشتراط النية ما يشتريه المضارب، فإنه يكون للتجارة مطلقا؛ لأنه لا يملك بمالها غيرها

(قوله : واستثنوا إلخ ) ذكر في النهر أنه ينبغي جعله من النية دلالة فلا حاجة إلى الاستثناء ( قوله : مطلقا) أي وإن لم ينوها أو نوى الشراء للنفقة ، حتى لو اشترى عبيدا بمال المضاربة ثم اشترى لهم كسوة وطعاما للنفقة كان الكل للتجارة ، وتجب الزكاة في الكل بدائع ( قوله : لأنه لا يملك بمالها غيرها ) أي بمال التجارة غير التجارة بخلاف المالك إذا اشترى لهم طعاما وثيابا للنفقة لا يكون للتجارة لأنه يملك الشراء لغير التجارة بدائع

ص105 - كتاب الأصل لمحمد بن الحسن ط قطر – باب العاشر

قلت: أرأيت الرجل يعطي الرجل (١) مالاً مضاربة فربح (٢) فيه المضارب، على من يكون (٣) زكاة المال وزكاة الربح؟ قال: على رب المال زكاة المال وحصته من الربح، وعلى المضارب زكاة حصته من الربح إذا وصل إليه إن كان يجب في مثله الزكاة، وإن كان لا يجب في مثله (٤) الزكاة وليس له مال غيره فليس عليه فيه شيء. قلت: فإن كان له مال غير ذلك؟ قال: يضمه إلى ماله فيزكيه معه.

كتاب القرارات والتوصيات الدورات 2-24 القرارات 1-238

Resolutions and Recommendations of the International Islamic Fiqh Academy, pg 50

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