Earnings from Disability

[Ephiny]

Assalamu alaikum wa Rahmatullahi wa Barakatuham, I aving trouble finding clarification on earnings through being disabled.  I had to stop working due to my health and am in an up hill battle with SSA to get disability.  Is it haram to collect disability and also is it haram to have a savings bond? I was given one as a child and now it is fully matured to cash, only $50.

Also I am a revert took my Shahadah on April 9 of this year, I am a mother of 2 children. My husband works but he isn't making enough to cover all of our bills.

[Heba E. Husseyn]

Walaikum As-Salaam dear Sister.   May Allah The Almighty reward you and congratulations for taking Shahadah last April. 
 
No sister, disability money or allowance is certainly NOT Haram.  It is Halal.  For those who cannot work because of health issues, disability is basically the same as pension.  It is definitely Halal. 
 
You can also cash your savings bond.  There is nothing Haram about that either.   According to standard Shariah rules, investment in conventional bonds and GICs are viewed as "interest" generating income and therefore prohibited.  But that is a very hasty assessment.  Interest or "riba" as prohibited in the Noble Quran does not allude to the type of interest involved in bonds and GICs.   What the Quran prohibits is interest on principle charged by money lenders from individuals, and for every late payment the amount of interest is doubled and quadrupled.  That is indeed very hurtful for the poor borrowers and is completely Haram.  From the same perspective, interest taken from individual borrowers on mortgages and line of credit are practically no different from interest charged by medieval money lenders and are therefore Haram.  But not bank investments where the banks call the rules, making sure that whatever yield the customer earns has its own benefits for the lender as well.   And in the case of mortgages etc., the responsibility lies with the lenders, not the borrowers who are too helpless and have no other choice.  

Bank investments / bonds are available in just about all Muslim countries as well under titles such as Shariah compliance schemes which are really no different from regular investments or bonds.
  
Most of our jurists who may mention firm prohibitions over purchasing GICs or bonds before their audience, often follow precisely the same system themselves in regard to their personal banking.  
 
May Allah Almighty grant you good health and comfort.  May Allah bless you and your family.  Ameen.


For detailed information and clearer understanding, you may like to read our following posts in regard to "riba" (interest):

-  Is riba sinful for giver and taker ?
-  Riba
-  Riba or interest

[Ephiny]

Thank you so much sister for the clarification and the additional links.

[Heba E. Husseyn]

You're welcome sister ..