✿ Written by: Saudi Fatwa Committee (Fatāwā)
It is permissible, in times of necessity, to deposit money in interest-based banks without engaging in interest (riba). However, if it is possible to deposit wealth elsewhere—in a non-interest-based alternative—then it is more prudent and preferable to do so.
This is in accordance with the saying of the Prophet ﷺ:
“Leave what causes you doubt for what does not cause you doubt.”
(Sunan at-Tirmidhī, Ḥadīth no. 2518; Sunan an-Nasā’ī, Ḥadīth no. 5711)
He ﷺ also said:
“Whoever avoids doubtful matters has preserved his religion and his honor.”
(Sunan Abī Dāwūd, Ḥadīth no. 3330)
[Ibn Bāz – Majmūʿ al-Fatāwā wa al-Maqālāt, 19/413]
Depositing money in a bank is commonly described as a trust (amānah). However, in reality, it is a loan (qarḍ), because:
❖ Depositing Wealth in Interest-Based Banks
It is permissible, in times of necessity, to deposit money in interest-based banks without engaging in interest (riba). However, if it is possible to deposit wealth elsewhere—in a non-interest-based alternative—then it is more prudent and preferable to do so.
This is in accordance with the saying of the Prophet ﷺ:
“Leave what causes you doubt for what does not cause you doubt.”
(Sunan at-Tirmidhī, Ḥadīth no. 2518; Sunan an-Nasā’ī, Ḥadīth no. 5711)
He ﷺ also said:
“Whoever avoids doubtful matters has preserved his religion and his honor.”
(Sunan Abī Dāwūd, Ḥadīth no. 3330)
[Ibn Bāz – Majmūʿ al-Fatāwā wa al-Maqālāt, 19/413]
❖ Clarification on the Nature of Deposits
Depositing money in a bank is commonly described as a trust (amānah). However, in reality, it is a loan (qarḍ), because:
- The bank is obligated to return the money even if it is lost.
- In contrast, a true amānah is not returned if it is lost without negligence or interference from the trustee.
