Rules of Trust-funds
Issue No. 2421- People’s short term and long term 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 through Islamic contracts and agreements e.g. Muzaribah, partnership etc., and that the depositor should be sure or should consider it highly probable that, as an agent of the client, the bank carries out these agreements in an Islamic manner. However, if he is sure that these are only formal procedures and it is only on paper, that interest is haraam.
