Salam, What is the ruling on opening a current account in riba-based banks if one does not take the interest that is paid on it? A current account is different from a savings account, it is just where I receive my salary and spend it. To my knowledge the bank does not use the money you put in a current account unlike a savings account. So I was wondering if it is still permissible as some say we cannot put any of our money in any riba based bank, even if you get no interest. Thank you.
In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
In today’s economic climate, it is extremely difficult to keep away from conventional banks. There is a need to safe keep ones money. Electronic transfers and debit cards are common modes of payments and exchanges. Many instances they are even requirements. In view of such difficulties, the Ulama have granted a leeway to deposit money in conventional banks and use other facilities of such banks which are not un-Islamic. This leeway is granted as a need and could be used only to the extent of the need. If any interest funds are earned on conventional savings accounts, the interest should be dispensed to the poor and needy without the intention of reward.
Alternatively, one should search for Shariah Compliant based savings and deposit accounts.
And Allah Ta’āla Knows Best
Abu ‘Umar Muhammad bin Zayn Patel
Student Darul Iftaa
South Africa
Checked and Approved by,
Mufti Ebrahim Desai.