Fatwa: # 19093
Category: Financial Transactions
Country: United Arab Emirates
Date: 1st June 2020

Title

What should I do with interest money from the bank? Can I give it to my poor relatives?

Question

From the Gulf, I transfer my earnings to a savings account in an Indian Bank. Every six months the bank adds interest money to my account. I heard that interest money can be donated without the intention of any reward. If this is right, please advise me as to whom I can donate this interest money to. Can it be given to needy relatives of mine?

Answer

In the Name of Allāh, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

As a general rule, no Muslim by his free choice should deposit his money in an interest-bearing account. You must immediately transfer your money to a non interest-bearing account.

It is incumbent upon you to give the interest money from the bank as charity to the poor who are entitled to receive Zakaat (i.e. who do not have the nisaab of Zakaat) without the intention of receiving reward. This charity is meant only for disposing of an unclean and unlawful money and to relieve oneself from the burden of an ill-gotten gain.

But it should be remembered that this amount is unclean only for the person who has received it as interest. The poor persons who get it from him as charity can use this amount for their personal benefits.

You may give the interest money to your relatives who are entitled to receive Zakaat.

(Contemporary Fatawaa: pg. 242, Idara-e-Islamiat)

And Allāh knows best.

Ml. Faizal Riza
Melbourne
, Australia

Concurred by:

Muftī Abrar Mirza
Chicago
, IL (USA)

 

Under the Supervision of Muftī Ebrahim Desai (South Africa)

 

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DISCLAIMER - AskImam.org questions
AskImam.org answers issues pertaining to Shar'ah. Thereafter, these questions and answers are placed for public view on www.askimam.org for educational purposes. However, many of these answers are unique to a particular scenario and cannot be taken as a basis to establish a ruling in another situation or another environment. Askimam.org bears no responsibility with regards to these questions being used out of their intended context.
  • The Shar's ruling herein given is based specifically on the question posed and should be read in conjunction with the question.
  • AskImam.org bears no responsibility to any party who may or may not act on this answer and is being hereby exempted from loss or damage howsoever caused.
  • This answer may not be used as evidence in any Court of Law without prior written consent of AskImam.org.
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