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Are Muslims allowed to receive interest?

Answered according to Hanafi Fiqh by Askimam.org

My question is: Is it allowed for a Muslim to place his money in the bank and recieve interest,although the bank does have a checking account with no interest. Also is it Kasb-e-Halal to work in a gas station which sells alcohol. I’m a student here and I dont have any other source of income.

Answer

1. Interest monies must be given to the poor and needy who are eligible to
accept Zakaat without the intention of reward. However, interest received
from government institutes, eg. post office could be used to offset
government taxes. Interest received from private banks cannot be used to
offset taxes. It may be used to offset interest charged from the same bank.
2. Your income will be Halaal.

and Allah Ta’ala Knows Best

Mufti Ebrahim Desai
FATWA DEPT.

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