Contributory savings plan that generates interest


I am working for a company and part of my remuneration package includes a contributory savings plan that generates interest. Being aware of the Islamic principles surrounding Riba can you advice on how this should be handled. A number of Muslim brothers working for the company have been discussing this issue and exploring our options as listed below

1. Simply withdraw our funds and leave the interest.

2. With draw and give the interest to needy cases.

3. Possibility of placing our contributions into a capital fund that does not generate interest. This option is probably the best as it looks on paper however it could be difficult to accomplish as it is a group benefit type fund.


Wa Alaikum As Salaam,

If you can avail yourself of the third option, then this is the best. However, if this is difficult, then you should adopt your second option. This is better than the first seeing that your interest (money) which is left behind is sometimes given to other religious bodies which become a means of help and support to their organizations. So, its best that you withdraw it and give it to the poor and needy.

And Allah knows best,

Mufti Waseem