✿ Written by: Saudi Fatwa Committee (Fatāwā)
❖ Depositing Wealth in Banks Free from Interest-Based Dealings
There is no objection to depositing wealth in a bank that does not engage in interest-based transactions. However, if the amount reaches the niṣāb of Zakāh or exceeds it, then Zakāh becomes obligatory after a full lunar year.
❖ Contrast with Interest-Based Banks
Depositing wealth in interest-based banks is not permissible, except in cases of necessity and only without taking any interest (riba). This is because placing funds in such banks entails a form of cooperation in their interest-based operations.
Even if a person does not intend to support riba, but necessity compels him, then depositing without deriving any interest is allowed.
Allah ﷻ says:
«وَقَدْ فَصَّلَ لَكُم مَّا حَرَّمَ عَلَيْكُمْ إِلَّا مَا اضْطُرِرْتُمْ إِلَيْهِ»
(Al-Anʿām: 119)
“He has clearly explained to you what He has forbidden you—except when you are compelled.”
❖ Preferred Course of Action
It is better and more beneficial to place one’s wealth in the hands of trustworthy individuals or institutions that operate through Shariah-compliant transactions, so that one may utilize their wealth effectively instead of letting it remain idle.
Reference:
Ibn Bāz – Majmūʿ al-Fatāwā wa al-Maqālāt, 19/419
