Transactions & Dealings >> Interest & Insurance

Question ID: 44667Country: United States of America

Title: education savings plan

Question: I have a daughter and I want to enroll into education savings plan. It is optional, I contribute a said amount of money in a fund until my daughter is eighteen, then we withdraw the money. The whole time the fund accrues bearing interest. Is it legal?

Answer ID: 44667Posted on: Aug 31, 2020

Bismillah hir-Rahman nir-Rahim !

(Fatwa: 548/527/N=1434) Interest based dealing is unlawful and haram in Islam. The hadith warns against it severely. Hence it is not lawful to take education saving plan and it is necessary for Muslims to avoid it.

Allah (Subhana Wa Ta'ala) knows Best

Darul Ifta,

Darul Uloom Deoband, India

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Title: education savings plan

Question: I have a daughter and I want to enroll into education savings plan. It is optional, I contribute a said amount of money in a fund until my daughter is eighteen, then we withdraw the money. The whole time the fund accrues bearing interest. Is it legal?

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