Depositing money in a society

Question

Question: In Africa some well-wishers have founded an educational welfare society. Its main activity is that they collect a certain sum from people every month and deposit it in the society fund in that person’s name, and at a time of hardship they give this money to the depositor. According to the society’s rules, if the depositor dies, his children’s education is provided for from the accumulated money; and if at some point he wishes to withdraw his entire sum, his money is returned to him after a fixed period,…

Answer

If the society trades with these sums and gives its profit to the participants in proportion to their sums, then depositing money there and taking the profit is proper, provided that the trade itself is permissible and nothing else in it is contrary to the Shari‘a.

Source: Fatawa Mahmudiyya

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