Q: Salams, about 20 years ago when i was in 6th grade i won some building competitions and was awarded two savings bonds. the bonds were put aside as they hadn’t reached maturity. they were purchased at $50 according to the bank, the value on the front of $100 is the value at maturity, once they matured they have been earning interest. I recently recalled having these bonds, and am confused if anything over the intitial $50 would be considered interest or is it anything over the $100 face value? Guidance would be appreciated.

A: Walaikumsalam,

May Allah (SWT) bless you  in seeking halal revenues.  We are living in times where people care about money more than the halal ways to acquire it. Allah (SWT) has blessed you with a good concern, in this aspect, may Allah (SWT) make us all like you, ameen.

The excess money ($50) would be viewed as interest. (This is based on our discussions with investment bankers.) Thus, this excess money should be given to the poor or a needy cause without you taking any benefit from it — reward, etc.

Allah Certainly Knows Best.

p.s. There are however Islamic bonds, those bonds function differently. Should this be an Islamic bond, kindly send us the details (brochure) for evaluation.