[Q 246] Ruling on Bank Account Switching Incentives

Question

Is this halal to get £200 when we switch accounts to any other bank account.

Usually banks offer some rewards if someone switches his account to them but they put one condition that needs to deposit £1250 for 24 hours then they will give reward.

بسم الله الرحمن الرحيم

الجواب بعون الملك الوهاب اللهم هداية الحق والصواب

Answer

The amount given by the bank upon account switching is called a reward, and it is permissible to accept it, but this is only when the bank has not set a condition of depositing a specific amount. Therefore, where there is no such condition in the bank, there is absolutely no harm in accepting the money received from switching accounts.

However, in a bank where there is also a condition that you have to deposit a specific amount first to get the reward, then it will be seen whether the bank is owned by Muslims or non-Muslims. If the bank is owned by Muslims or any Muslim has a share in it, then taking this money is not permissible because it will be considered interest (Riba).

If the bank is completely owned by non-Muslims, then taking this money is permissible, and in this case, it will not be considered Riba (لا ربا بین المسلم والحربی).

But a Muslim should take this money with the intention that the non-Muslim is giving his money willingly, so there is no harm in taking it.

Answered by: Mufti Sajid Attari