I need to know that interest money given by the banks on deposits is haram or halal for Muslims. Although I am firm that its haram for a Muslim to use interest, but recently I came across a fatwa by Akhtar Raza Khan on his web site in which he states that interest money given by banks in countries (India, Britain, South Africa) which are not Islamic States, is legal for the Muslims and they can be taken/used. Please give your thoughts on this in detail.

I need to know that interest money given by the banks on deposits is haram or halal for Muslims. Although I am firm that its haram for a Muslim to use interest, but recently I came across a fatwa by Akhtar Raza Khan on his web site in which he states that interest money given by banks in countries (India, Britain, South Africa) which are not Islamic States, is legal for the Muslims and they can be taken/used. Please give your thoughts on this in detail.

Answer

(Fatwa: 404/L-174/TL=1434)

The use of interest is not lawful. And as per the preferred saying the use of interest in India is not lawful.

Allah (Subhana Wa Ta’ala) knows Best

Darul Ifta,
Darul Uloom Deoband