A bank offers you monetary benefit on the amount you keep in the bank. The variable amount you get depends on the return the bank makes from its own business ventures funded by your money. Will it be permissible to keep the money in such a bank and will it be permissible to utilise the money the bank offers you. Regarding previously used money which was obtained from interest. Is returning the money in the way of Allah a good way to repent from the sin?
In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh
Conventional interest based savings accounts are impermissible since the depositor effectively earns interest issued by the bank on his/her deposited funds. Alternatively, one should search for Shariah Compliant based savings and deposit accounts. Interest funds earned on conventional savings accounts should be dispensed to the poor and needy without the intention of reward. Furthermore it is impermissible to deliberately deposit such funds with a conventional institution with the objective of dispensing such funds to the poor and needy. One should make sincere Tawbah and repentance for such actions and resolve to ensure one’s financing dealings are according to the laws and rules of Shariah. Also you may dispense of charity to the poor and needy as charity dispels the wrath of Allah (Ta’ala).
And Allah Ta’āla Knows Best
Ismail Desai,
Darul Iftaa
Checked and Approved,
Mufti Ebrahim Desai.