Written by: Fatwa Saudi Fatwa Committee
Allah (SWT) says:
«وَأَحَلَّ اللَّهُ الْبَيْعَ وَحَرَّمَ الرِّبَا»
[Al-Baqarah: 275]
"Allah has permitted trade and prohibited usury."
He also says:
«يَا أَيُّهَا الَّذِينَ آمَنُوا اتَّقُوا اللَّهَ وَذَرُوا مَا بَقِيَ مِنَ الرِّبَا إِن كُنتُم مُّؤْمِنِينَ ﴿٢٧٨﴾ فَإِن لَّمْ تَفْعَلُوا فَأْذَنُوا بِحَرْبٍ مِّنَ اللَّهِ وَرَسُولِهِ ۖ وَإِن تُبْتُمْ فَلَكُمْ رُءُوسُ أَمْوَالِكُمْ لَا تَظْلِمُونَ وَلَا تُظْلَمُونَ»
[Al-Baqarah: 278-279]
"O you who have believed, fear Allah and give up what remains [due to you] from interest, if you should be believers. And if you do not, then be informed of a war [against you] from Allah and His Messenger. But if you repent, you may have your principal - [thus] you do not wrong, nor are you wronged."
The one who deposits the money and receives a fixed profit will find no blessing in their wealth. Allah (SWT) says:
«يَمْحَقُ اللَّهُ الرِّبَا وَيُرْبِي الصَّدَقَاتِ»
[Al-Baqarah: 276]
"Allah destroys interest and increases charity."
This form of interest includes both riba al-nasiya (interest on deferred payments) and riba al-fadl (interest on unequal exchange), as the depositor gives money to the bank with the condition that a fixed profit will be received over a specified period.
[Permanent Committee for Islamic Research and Ifta, Fatwa 222]
Depositing Money in Banks with a Fixed Profit
It is not permissible to deposit money in banks with a fixed profit because this constitutes an interest-based (usury) agreement.Allah (SWT) says:
«وَأَحَلَّ اللَّهُ الْبَيْعَ وَحَرَّمَ الرِّبَا»
[Al-Baqarah: 275]
"Allah has permitted trade and prohibited usury."
He also says:
«يَا أَيُّهَا الَّذِينَ آمَنُوا اتَّقُوا اللَّهَ وَذَرُوا مَا بَقِيَ مِنَ الرِّبَا إِن كُنتُم مُّؤْمِنِينَ ﴿٢٧٨﴾ فَإِن لَّمْ تَفْعَلُوا فَأْذَنُوا بِحَرْبٍ مِّنَ اللَّهِ وَرَسُولِهِ ۖ وَإِن تُبْتُمْ فَلَكُمْ رُءُوسُ أَمْوَالِكُمْ لَا تَظْلِمُونَ وَلَا تُظْلَمُونَ»
[Al-Baqarah: 278-279]
"O you who have believed, fear Allah and give up what remains [due to you] from interest, if you should be believers. And if you do not, then be informed of a war [against you] from Allah and His Messenger. But if you repent, you may have your principal - [thus] you do not wrong, nor are you wronged."
The one who deposits the money and receives a fixed profit will find no blessing in their wealth. Allah (SWT) says:
«يَمْحَقُ اللَّهُ الرِّبَا وَيُرْبِي الصَّدَقَاتِ»
[Al-Baqarah: 276]
"Allah destroys interest and increases charity."
This form of interest includes both riba al-nasiya (interest on deferred payments) and riba al-fadl (interest on unequal exchange), as the depositor gives money to the bank with the condition that a fixed profit will be received over a specified period.
[Permanent Committee for Islamic Research and Ifta, Fatwa 222]