Premium bonds have been debated for decades over their ability to actually beat out interest bearing savings plans and conventional banking practices. Premium bonds allow the bond buyer to participate in a monthly lottery that picks out individual bond numbers. If your bond number is picked you are awarded a cash prize that can range from fifty pounds to a million pounds. Your investment is safe and the government uses the money to fund public projects. There have been conspiracy theories and other grumblings about the premium bond system and now there are religious concerns.
A recent ruling in the Islamic world has made premium bonds ownership against Islamic law. Muhammad Adam al-Kawthari has interpreted the Koran in stating that contrary to shares, premium bonds are a loan instead of a partial owning of a company as in shares. The act of making money off of your own money in the form of interest is considered usury and takes away from the pillar of faith that represents being charitable. Islamic scholars have declared all bonds that produce interest as unlawful. Even a premium bond cash prize is considered apart of interest and cannot be allowed. Premium Bonds and Islamic Law >>> By Allyson Rowen Taylor
Mark Alexander (Paperback)
Mark Alexander (Hardback)
