I have been reading a few articles recently in regards to interests/profit accrued from saving accounts and found out that they are forbidden.
I currently have a current account that works as a saving account as well; I get a fixed percentage of interest and then 20% tax is deducted from the profit. I was about to open a few more accounts but after reading that it's not permitted in Islam, I will not close all my saving accounts soon.
However, I read that investments,stock options and similar options are permitted in Islam,provided that some requirements are fulfilled. Forgive me for asking questions that I have seen being asked here several times but I'm not familiar with these approaches and will really appreciate if someone could provide clear instruction as to what I could possibly do with my savings.
First of all, the reason why I opened a saving account is based on the simple idea of the value of my money; because of inflation the value of my money isn't the same which means that even if I keep the money in an account that doesn't return any interest/profit, I will be effectively losing money. £100 in my account today might only worth £80 next year because of inflation(this is how I understand it); so in order to protect the value of my money I decided to open a saving account which sort of absorbs the damage caused by the inflation. if this is not permitted then how can I safeguard my saving?
-Are CASH ISA accounts permitted ?
-Investing in companies(provided they are not forbidden companies) is permitted ? what are the things I should look for when investing in the market ?