Taking interest from muslim and non muslim banks

Question

Certain bank accounts offer interest without the option to get this removed. What should one do with the interest accrued on this type of account?

Answer

If the bank is owned by a Muslim or a Muslim has a share in it then taking interest from that bank is not permissible. If the bank doesn’t offer the option to remove the interest then opening an account with that bank is Haram. If such interest is taken and there is no way to return it back then it is necessary to give it to eligible person (Faqeer-e-shari) just to get rid of this impure wealth (i.e. he will not make intention of Sadaqah and getting reward).

However, if the bank isn’t owned by a Muslim and no Muslim has any sort of share in that bank then taking benefits from that bank is permissible for muslim because this is not interest (Riba) in reality as mentioned in Hadith. One can take such benefit keeping this in mind and to avoid is better.

Answered by: Mufti Sajid Attari

Translated by: Gohar Attari