✿ Written by: Saudi Fatwa Committee (Fatāwā)
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.
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.”
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
❖ 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
