Keeping Money in Banks

Authored by: Al-Sheikh Mubashir Ahmad Rabbani (Hafizahullah)

Question:

Is it permissible to deposit money in a bank if one does not take interest on it?

Answer:

Depositing money in a bank is not permissible whether you take interest or not, because the bank utilizes this money for interest-based transactions, making it haram due to aiding in sin. As mentioned in the Qur'an:

"And cooperate in righteousness and piety, but do not cooperate in sin and aggression. And fear Allah; indeed, Allah is severe in punishment."
[Surah Al-Ma'idah: 2]

If someone does not have any alternative place to keep their money securely, they may, out of necessity, deposit it in the bank’s current account temporarily until they find a suitable, halal alternative.

As the Qur'an states:

"He has explained to you in detail what is forbidden to you, except under compulsion."
[Surah Al-An’am: 119]

Once a permissible and secure option becomes available, one must withdraw the money from the bank and transfer it to a lawful place to avoid aiding in sin.

Conclusion:

While necessity is acknowledged in exceptional cases, Muslims should seek alternatives to avoid involvement with interest-based banking systems as much as possible.
 
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