Question 604: Two questions: 1. I have opened an account in a bank which is owned by momineen. Their account condition states they will give me profit of 4.5 % per annum (profit “Bank Interest” will be credited to my account on a monthly basis) depending on my average balance. Is this allowed as per Sayyid Sistani?

Note i have not asked them for interest. They have advertised this and the percentage is fixed from their side which is subject to annual review and changes according to banks financial profit

2. Is trading shares on stock market halal? Am I entitled to the profit, according to Sayyid Sistani?

Answer 604: A1: If the bank acts as an agent (through a legal contract) on behalf of the client and it is carrying out its contracts in accordance with Islamic laws, there is no problem in taking the interest. However, if it is in the form of a loan it would be haram to lay down a condition for interest and to receive the interest.^[1]

Ayatollah Bahjat (ra): People’s deposits with banks and the interest which is given to them by the banks will be halal provided that it has been in accordance with the Islamic criteria and on the basis of Islamic contracts and agreements. For example, the bank can sell a property to the client on the condition that he will lend some money as a loan to the bank.^[2]

Ayatollah Vahid Khurasani: If the client does not lay down a condition for interest and he does not consider the bank indebted to him, there is no problem in taking the interest even if [he knows that] the bank gives interest.^[3]

According to Sayyid Sistani (ha), it is permissible to deposit money in a bank without prior condition for interest and it is as well permissible to take interest, if the bank in which money is deposited belongs to Muslims. If it belongs to government, it is permissible to take interest provided that half of the interest is given away to poor people (momeneen of them^).[4]

A2: There is no objection in it per se.[5]

Note: It is absolutely permissible to take interest from a non-Muslim bank. Even making a condition for obtaining interest is permissible. Taking a loan with an interest is not permissible unless one takes it with the intention of securing the money after which he considers it as loan given to him on behalf of Hakim Shar’a (Mujtahed).[6]

But, buying shares of a bank that does not practice the Islamic banking system is not permissible, according to Ayatollahs Khamenei, Makarem and Safi Golpayegani.[7]

For further information in this regards, please refer to the following answer:

Index:  Receiving interest from non-Islamic banks, answer 168.

[1]. Ayatollah Khamenei, Answers to Religious Questions (Ajwebat al-Istiftaat), question 1926 and 1940; Ayatollah Noori, Tawzih al-Masail, Current Legal Issues; Ayatollah Tabrizi, Istiftaat, question 2120; Ayatollah Makarem Shirazi, Istiftaat, vo.1, question 1377 and 1383 ; Ayatollah Fazel Lankarani, Jami’ al-Masail, vol.1, question 1094 and 1095 and vol.2 question  2003; Ayatollah Saafi, Jami’ al-Ahkaam, vol.2, question 1990 and 1991; extracted from Porsman Software.

[2] . Bahjat, Tawzih al-Masail, issue No. 2283.

[3]. Vahid Khurasani, Tawzih al-Masail, issue No.2850.

[4] . The official website of the office of Sayyid Sistani (ha), rules concerning Interest.

[5] . Ibid, rules concerning Investment.

[6] . Ibid, rules concerning Interest.

[7]. Adopted from answer 1622 IQ.