Fatwa No : 85290
The Ruling on Investing in Premium Bonds in the United Kingdom

The Ruling on Investing in Premium Bonds in the United Kingdom

I want to invest in Premium Bonds in the United Kingdom. These are similar to Pakistani prize bonds. Is this permissible (halal)? In Premium Bonds, instead of receiving interest, the investor gets an opportunity in which there is a chance of receiving a prize that is exempt from tax. The investor in Premium Bonds is given a permanent number for each pound invested.

الجوابُ حامِدا ًو مُصلیِّا ً

If the system of distributing prizes and other facilities under the Premium Bonds scheme is the same as the prize bond scheme in Pakistan, then this is a transaction that is Islamically impermissible, as it involves both gambling and interest (riba). It is therefore obligatory to avoid it. However, if the full details are provided in writing, then it can also be reviewed further.