Investing in a profit and loss account at the bank

Q: I want to open an account in the bank. The name of the account is PLS (Prophet and loss saving). The policy of bank is if they invest my amount and earn some profit, they will give me my profit. If they have loss, then I will accept it. Is this is according to Islam or not? Please inform me. I shall be very thankfull.

A: The dealings of banks are ambiguous and they do not seem to be scrupulous nor committed to Islam. Their loyalties are more with wealth and their property. Unfortunately, they do not have any respect for the shari`ah nor the spirit of the sunnah. Hence, we do not encourage anybody to have these types of dealings with banks.

And Allah Ta'ala (الله تعالى) knows best.



Answered by:

Mufti Ebrahim Salejee (Isipingo Beach)