Written by: Fatwa Saudi Fatwa Committee
«وَقَدْ فَصَّلَ لَكُم مَّا حَرَّمَ عَلَيْكُمْ إِلَّا مَا اضْطُرِرْتُمْ إِلَيْهِ»
[Al-An'am: 119]
"Indeed, He has explained to you what He has prohibited, except that to which you are compelled."
However, depositing money with the condition of receiving interest is a grave sin, as usury is a major sin. Allah has prohibited it in His Book and through the words of His Messenger (PBUH). It is a cursed practice, and those who engage in it are considered to be at war with Allah and His Messenger.
Those who are involved in such transactions may use their money in righteous deeds and for supporting the Mujahideen, as Allah promises them reward and recompense:
«الَّذِينَ يُنفِقُونَ أَمْوَالَهُم بِاللَّيْلِ وَالنَّهَارِ سِرًّا وَعَلَانِيَةً فَلَهُمْ أَجْرُهُمْ عِندَ رَبِّهِمْ وَلَا خَوْفٌ عَلَيْهِمْ وَلَا هُمْ يَحْزَنُونَ»
[Al-Baqarah: 274]
"Those who spend their wealth, both in secret and openly, day and night, for them is their reward with their Lord, and there will be no fear upon them, nor will they grieve."
Allah also says:
«وَمَا أَنفَقْتُم مِّن شَيْءٍ فَهُوَ يُخْلِفُهُ ۖ وَهُوَ خَيْرُ الرَّازِقِينَ »
[Saba: 39]
"And whatever you spend, He replaces it; and He is the best of providers."
This includes charity, zakat, and other forms of giving.
The Messenger of Allah (PBUH) said:
"Charity does not decrease wealth. Allah increases the honor of a servant when they forgive others. Whoever humbles themselves for the sake of Allah, Allah will elevate them."
[Sahih Muslim 2588/69]
He also said:
"Every morning, two angels descend: One says, 'O Allah, compensate the one who spends.' The other says, 'O Allah, destroy the wealth of the one who withholds.'"
[Sahih al-Bukhari, Hadith 1442, Sahih Muslim 11010/57]
Numerous verses and hadiths emphasize the virtue of spending in good deeds and giving charity to the needy.
However, if the owner of the money, out of ignorance or laziness, receives interest, then if Allah guides him, he should spend the money in good causes and not keep it mixed with interest, because anything mixed with interest will be eradicated. As Allah (SWT) says:
«يَمْحَقُ اللَّهُ الرِّبَا وَيُرْبِي الصَّدَقَاتِ»
[Al-Baqarah: 276]
"Allah eliminates usury and increases charity."
[Ibn Baz: Majmua' al-Fatawa wa al-Maqalat, 420/19]
Depositing Money in Interest-Based Banks in Non-Muslim Countries
It is not permissible to deposit money in interest-based banks, whether their officials are Muslim or non-Muslim, because it involves cooperation in sin and injustice, even if it is done without interest. However, when a person is forced to deposit money for safety reasons, there is no harm in doing so, provided it does not involve any interest. Allah (SWT) says:«وَقَدْ فَصَّلَ لَكُم مَّا حَرَّمَ عَلَيْكُمْ إِلَّا مَا اضْطُرِرْتُمْ إِلَيْهِ»
[Al-An'am: 119]
"Indeed, He has explained to you what He has prohibited, except that to which you are compelled."
However, depositing money with the condition of receiving interest is a grave sin, as usury is a major sin. Allah has prohibited it in His Book and through the words of His Messenger (PBUH). It is a cursed practice, and those who engage in it are considered to be at war with Allah and His Messenger.
Those who are involved in such transactions may use their money in righteous deeds and for supporting the Mujahideen, as Allah promises them reward and recompense:
«الَّذِينَ يُنفِقُونَ أَمْوَالَهُم بِاللَّيْلِ وَالنَّهَارِ سِرًّا وَعَلَانِيَةً فَلَهُمْ أَجْرُهُمْ عِندَ رَبِّهِمْ وَلَا خَوْفٌ عَلَيْهِمْ وَلَا هُمْ يَحْزَنُونَ»
[Al-Baqarah: 274]
"Those who spend their wealth, both in secret and openly, day and night, for them is their reward with their Lord, and there will be no fear upon them, nor will they grieve."
Allah also says:
«وَمَا أَنفَقْتُم مِّن شَيْءٍ فَهُوَ يُخْلِفُهُ ۖ وَهُوَ خَيْرُ الرَّازِقِينَ »
[Saba: 39]
"And whatever you spend, He replaces it; and He is the best of providers."
This includes charity, zakat, and other forms of giving.
The Messenger of Allah (PBUH) said:
"Charity does not decrease wealth. Allah increases the honor of a servant when they forgive others. Whoever humbles themselves for the sake of Allah, Allah will elevate them."
[Sahih Muslim 2588/69]
He also said:
"Every morning, two angels descend: One says, 'O Allah, compensate the one who spends.' The other says, 'O Allah, destroy the wealth of the one who withholds.'"
[Sahih al-Bukhari, Hadith 1442, Sahih Muslim 11010/57]
Numerous verses and hadiths emphasize the virtue of spending in good deeds and giving charity to the needy.
However, if the owner of the money, out of ignorance or laziness, receives interest, then if Allah guides him, he should spend the money in good causes and not keep it mixed with interest, because anything mixed with interest will be eradicated. As Allah (SWT) says:
«يَمْحَقُ اللَّهُ الرِّبَا وَيُرْبِي الصَّدَقَاتِ»
[Al-Baqarah: 276]
"Allah eliminates usury and increases charity."
[Ibn Baz: Majmua' al-Fatawa wa al-Maqalat, 420/19]