Authored by: Fatwas of the Saudi Fatwa Committee
Principle:
Dealing with banks in permissible ways is allowed, provided that no interest (riba) is involved. Examples of permissible transactions include:
- Buying from banks
- Currency exchange
- Transferring money through banks
There is no harm in engaging in these activities as long as they do not involve prohibited elements.
The Prophet Muhammad (ﷺ) is reported to have:
- Purchased items from a Jew.
- Accepted gifts from them despite their involvement in consuming unlawful earnings and usury.
- Left his armor as collateral with a Jew at the time of his demise.
Thus, transferring money through banks, even if they engage in interest-based activities, is permissible as long as the specific transaction does not involve interest or other haram practices.
[Reference: Ibn Uthaymeen, Liqaa Al-Bab Al-Maftuh, Vol. 15, Page 70]
