Is the income from defense saving certificates Riba?

Question:
I completed my education with the assistance of loan facility (on interest) in 1998 and started job. I managed to pay off the loan and save some additional funds, all through my hard work (in my opinion). The funds could have been used to improve mine or my immediate family’s life style or any other purpose. But I invested the same in purchasing Government’s Defense Saving Certificates. Most of my colleagues were doing that at that time. These bonds are due to mature next year; however, I am now in doubt whether the multiplication to around three times should be accepted as income as I am a little confused whether it can be considered 100% hard earned money. Please advise how to make use of the amount I am due to receive. Please note that I stopped investing in these bonds since the time such doubts came to my mind.

Response:
Income from Defense Saving Certificates in my ordinary opinion is riba and forbidden. However, when you had invested the amount you didn’t realize that and therefore the Almighty hopefully is not going to reprimand you for having done that. My suggestion is that you make a rough estimation of the equivalent real value of what you had invested and take it as the amount you deserve and spend the rest on charitable avenues. Insha’Allah, your act would be acceptable in the eyes of God. He will engender more productive ability (barkat) in your wealth. And Allah knows the best.

Views: 298