Salm alkm.i would like to know if the government contribution towards the savings of a child's college fund is RIBA. They say if you open up an account for college savings they deposit for you $500 per year and they also give you 25 percent of what you save per year. Should we consider it permissible or no?

All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad is His slave and Messenger.

If the fund you mentioned is for saving money and not for lending money to any party, then it is permissible to participate in this fund.

Also, it is permissible to benefit from whatever the government offers as an additional amount to the saved amount according to the conditions of the grant.

Allaah Knows best.