Is It Permissible to Open a Savings Account Which Will Receive Interest?
Answered by Ustadh Tabraze Azam
Question: Assalamu ‘alaykum,
Is it permissible to open a savings account with a bank that provides interest? I have no intention of using the interest whatsoever; I would just like to deposit my money in a safe place.
Answer: Wa alaikum assalam wa rahmatullahi wa barakatuh,
No, it would not be permitted to open a savings account which engages with interest (riba), as Mufti Taqi Usmani explains in his Fiqh al-Buyu` [2.1063], because interest is categorically unlawful by the text of the Qur’an itself.
Allah Most High says, “But those who take usury will rise up on the Day of Resurrection like someone tormented by Satan’s touch. That is because they say, ‘Trade and usury are the same,’ but God has allowed trade and forbidden usury. Whoever, on receiving God’s warning, stops taking usury may keep his past gains– God will be his judge– but whoever goes back to usury will be an inhabitant of the Fire, there to remain. God blights usury, but blesses charitable deeds with multiple increase. He does not love the ungrateful sinner.” [2.275-276]
The solution would be to open a standard, non-interest bearing account and deposit your money there instead.
Please also see: How to Avoid Riba (Usury): A Reader
And Allah alone knows best.
Checked & Approved by Shaykh Faraz Rabbani.