Is it permissible to open a savings account in banks such that these funds are linked to the cost of living index?
It is not permissible to open savings accounts in usurious banks because they offer predetermined interest, which is the very essence of usury (riba). It is also not permissible to open current accounts in them, as this constitutes aiding their owners in sin. What the questioner referred to regarding the linkage of funds to the cost of living index does not change the ruling in any way, for the principle "every loan that draws a benefit is usury" still applies. If the bank takes the money for trading, and the owner of the money bears the profit and loss, then this is a permissible contract according to , provided that what is traded in is lawful. In summary: taking interest in exchange for depositing money in a bank is forbidden usury.
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