Assalam alaikum,
I’m considering opening a retirement account using the Robinhood app. My question is in regards to the permissibility of receiving a bonus for funding this account. They offer a 1% match (their way of saying bonus) on all contributions to the account and 3% match if you’re a member. You must keep your funds (investments) with them for a year or they take the match back. I intend to buy shariah compliant investments with all of my funds.
I understand that account bonuses are not permissible on regular cash accounts, since financial institutions use money you give them to do whatever they want (mostly lend out in exchange for riba). This boils down to the bank giving you riba for lending them money, thus, haram.
The Robinhood case feels different to me because, 1) Robinhood legally can’t use the funds you deposit in a retirement account it just sits there, 2) the funds will be sitting in sharia compliant investments anyway. Listening to interviews with the CEO, it seems like they’re offering this deal simply because they hope (and have data to suggest) customers who come in this way will use with other (non sharia compliant) products.
My questions:
- Is it permissible to open an account like this and receive the 1% match?
- Would it be permissible to get a membership and get the 3% match?