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Opening Interest Bearing Account to Reduce Cost of Buying Stock
Posted: 4 Shawwal 1422, 19 December 2001
|Q.) When trading through the Australian Stock Exchange, each
transaction attracts a fee of A$34 (I may buy and sell 3 to 4 times a week, so each cycle
of buying and selling costs A$64 so over the year, it will be quite a sum of money). If
however, I open a preffered trader bank account, then that fee falls to A$16. The problem
is that this bank account will pay me interest. I do not want the interest. All I want is
to reduce the costs associated with trading on the share market. Please tell me what I
should do. Should I open the account, and donate the interest at the end of the year, or
leave the interest in the account, or not open the account at all. Please advise me what
is permissible, and what is preffered. [Abdullah]
A.) In the situation mentioned by you in your question, you can open
an account with the intention that the amount of interest, if any, shall be donated to a
charity. It is not permissible for you to use that amount for your own benefit in any way.
But in the particular circumstances you have referred to in your letter you may be
forgiven by Allah Subhanahu Taala for opening interest bearing account.