I would be grateful if you could kindly advise if it is permissible to Invest in Premium bonds.
I have copied the link from the website below.
Walaikumussalam w w
Mufti Taqi Saheb has written in ‘Islam aur Jadeed Ma’ashi Masaail’ p.78 vol.4 that taking premium bonds is not allowed.
Although it seems that your money is used for buisiness and you are given the profits. You only get extra if your name comes out and you are allowed to withdraw the original amount whenever you like.
However, it’s not as simple as that. It still comes under the definition of ‘Riba’ (usury), because you are giving less and getting more, albeit once in a while, when your name comes in the raffle.
The concept of qimar (lottery) also comes in to effect, because the large amount is gambeled as to who should be given. So you either gain that amount or loose it.
Thus it is not permissible to take out premium bonds.