Treatise on Maqasid al-Shari’ah

Does Islam allow passive savings like what it is practiced in the financial world?

[The original posting can be found at http://alnaqiy.com/home/article/islam-allows-passive-savings/]

By nature, people work to earn money and accumulate wealth. Some people earn the money and invest it to generate more income; and some earn the money and keep it for the future. Allah has mentioned in the Qur’an that wealth is an embellishment of the worldly life. Allah says:

“Wealth and children are [but] adornment of the worldly life. But the enduring good deeds are better to your Lord for reward and better for [one’s] hope.” [Al-Kahf 18:46]

Nowadays, what is being practiced in Islamic banking is that depositors will put their money in banks either for safekeeping purpose or for investment.Read More »Does Islam allow passive savings like what it is practiced in the financial world?