A Bank Pension Scheme

Question

Our State Bank has introduced a scheme whereby, on depositing one hundred rupees a month in the bank for ten years, after ten years a monthly pension of 169 rupees 50 paise (small copper coins, fractions of a rupee) will be paid, while your principal and the profit on it will remain intact. The bank spends this money in trade and the like. Is it permissible according to the Shariʿa to take part in such a scheme or not? Please explain, and be rewarded.

Answer

Even if this money is deposited by way of partnership (shirka), fixing 169-50 monthly as a pension permanently after ten years is wrong, given that the principal and its profit will remain intact. Such a partnership is not valid according to the Shariʿa.

Source: Fatawa Mahmudiyya

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