Ruling on Sending and Receiving Money Through Interest-Based Banks

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:

1. Buying from banks
2. Currency exchange
3. 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]