Mu' meneen Brothers and Sisters,

As Salaam Aleikum wa Rahmatullahi wa Barakatuh.  (May Allah's Peace, Mercy and Blessings be upon all of you)

One of our brothers/sisters has asked this question:

Assalam O Alaikum

I have an bank account, i receive interest on it. The interest which i receive from the bank, can i give it to a Madrasat or an islamic school. It is necessay for me to use the bank for my daily transactions. Please provide me the answer with authentic hadith and quranic verses.

JaZAKALLAH

(There may be some grammatical and spelling errors in the above statement. The forum does not change anything from questions, comments and statements received from our readers for circulation in confidentiality.)

Answer:

What to do with interest money

In the name of Allah, We praise Him, seek His help and ask for His forgiveness. Whoever Allah guides none can misguide, and whoever He allows to fall astray, none can guide them aright. We bear witness that there is none worthy of worship but Allah Alone, and we bear witness that Muhammad (saws) is His slave-servant and the seal of His Messengers.

Allah says in the Holy Quran Chapter 2 Surah Baqarah verse 274-276:

But those who devour ‘riba’ become like the one whom Shaitaan has bewitched and maddened by his touch. They have been condemned to this condition because they say, “Trade is just like ‘riba”, whereas Allah has made trade halaal and ‘riba’ haraam. Henceforth, if one abstains from taking ‘riba’ after receiving this admonition from his Lord, no legal action shall be taken against him regarding the ‘riba’ he had devoured before: his case shall ultimately go to Allah. But if one repeats the same crime even after this, he shall go to Hell, where he shall abide for ever! Allah deprives ‘riba’ of all blessing and develops charity, and Allah does not like an ungrateful, sinful person.

Allah says further in the Holy Quran Chapter 2 Surah Baqarah verse 278:

O Believers!, fear Allah and give up that ‘riba’ which is still due to you, if you are true believers. But if you do not do so, then you are warned of the declaration of war against you by Allah and His Messenger!

Allah says in the Holy Quran Chapter 4 Surah Nisa verse 161:

That they took ‘riba’, although they were forbidden. And that they devoured men’s substance wrongfully. We have prepared for those among them who reject faith a grievous punishment (of Hell Fire)!

Al-Tirmidhi Hadith 2827 Narrated by Abdullah ibn Mas'ud

Allah's Messenger (saws) said, "Even though usury be much, it leads in the end to penury."

Al-Tirmidhi Hadith 2829 Narrated by Ali ibn AbuTalib

Ali said he heard Allah's Messenger (saws) invoke the curse of Allah on those who took usury, those who paid it, those who recorded it, and those who refused to give sadaqah.

Your Question: I have an bank account, i receive interest on it.

In light of the above quoted absolutely clear guidance of the Quran and the Sunnah, it should be obvious how despised and hated is the very concept of ‘riba’ and interest in the Sight of Allah Subhanah…..so much so that those who involve themselves in the crime of ‘riba’ or interest are warned of a ‘declaration of war’ with Allah and His Messenger (saws)!!!!

Your Question: The interest which i receive from the bank, can i give it to a Madrasat or an islamic school.

Dear and beloved brother in Islam, Allah and His Messenger (saws) have clearly and absolutely prohibited and declared it haraam for the believers to accept, take, or consume anything derived from ‘riba’ (usury or interest).

Allah Says in the Holy Quran Chapter 2 Surah Baqarah verse 172:

172 O ye who believe! Consume of the good things that We have provided for you and be grateful to Allah, if it is Him ye worship.

Sahih Muslim Hadith 2214 Narrated by Abu Hurayrah

Allah's Messenger (saws) said: ‘O people, Allah is Good and He, therefore, accepts only that which is good.’

As much as the giving of charity and sadaqah is deemed to be amongst the most meritorious deeds in the Sight of Allah Subhanah, Allah is Good and Pure and He only accepts that which is good and pure.

Just as one cannot steal money and give it in charity expecting rewards from Allah Subhanah; the charity one gives from wealth earned from unlawful sources would have absolutely no merit or weight in the Sight of Allah Subhanah; but rather the Lord Most Just will hold the person severely accountable for earning his wealth from sources which are clearly described and declared as absolutely unlawful for the believers.

It would be absolutely unlawful in Islam for a believer to accept or take any interest whatsoever….and regardless of how one spends this unlawfully earned wealth, he will be held severely accountable in the Court of Allah Subhanah for indulging in something which has been clearly prescribed as absolutely haraam for the believers.

Your Question: It is necessay for me to use the bank for my daily transactions.

Dear and beloved Sister, the guidance of Islam does not prohibit you from using the services of a bank or a financial institution, as long as you do not indulge in the evil of ‘riba’ by either accepting interest from the bank on your deposits or savings, or paying interest to the bank by accepting a loan from them! Thus it is not the concept of banking per say which is forbidden in Islam, it is the taking and paying and the indulging in the evil and heinous crime of ‘riba’ and interest which is absolutely and totally forbidden to the believers, who sincerely do not wish to be ‘at war’ with Allah and His Messenger (saws)!!!!

Allah says further in the Holy Quran Chapter 2 Surah Baqarah verse 278:

O Believers!, fear Allah and give up that ‘riba’ which is still due to you, if you are true believers. But if you do not do so, then you are warned of the declaration of war against you by Allah and His Messenger!

Allah says in the Holy Quran Chapter 4 Surah Nisa verse 161:

That they took ‘riba’, although they were forbidden. And that they devoured men’s substance wrongfully. We have prepared for those among them who reject faith a grievous punishment (of Hell Fire)!

Whatever written of Truth and benefit is only due to Allah’s Assistance and Guidance, and whatever of error is of me alone. Allah Alone Knows Best and He is the Only Source of Strength.

Your brother and well wisher in Islam,

Burhan