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What is the ruling on dealing with an Islamic bank that receives depositors' funds and disburses monthly amounts as profits under settlement for a period of three years, where the final settlement takes place after this period either by paying the difference in profitability or by deducting the disbursed surplus, and if the funds are withdrawn before three years, a profitability based on the agreed minimum is calculated?

1 min readAlso available in العربية

It is permissible for the client to withdraw their deposited funds from the Islamic bank before the end of the agreed-upon period, based on the principle of constructive liquidation adopted by the bank for settling projects and calculating profits. However, this is contingent upon determining a single, pre-agreed profit rate. The existence of two options for the profit rate (higher if the term is completed, and lower if withdrawn early) is impermissible, as it resembles "two sales in one sale," which is forbidden in Islamic law.

Summarized from the full answer at Ftawy · reviewed Sep 2, 2026

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