Question: Assalaamu Alaikum Mufti Saab, Can a muslim maintain an account in a banking institution? Can interest paid to an account held in a banking institution, be given to muslim relatives in need, if not , to whom?
Answer: Wa alaikum As Salaam,
For the sake of safety and protection of one’s funds, a Muslim can maintain an account in a banking Institution. While maintaining an account at the bank, a Muslim must try his best to open an interest free account. A Muslim must not allow interest to accumulate on his account. If for some reason, interest was given on one’s account, then it will be permissible to give it to Muslim relatives who are in need.
And Allah Knows Best.
Mufti Waseem Khan.
28/11/2013