Like me many other persons would like to know what to do with the Interest money. Whether it can be given to needy person or not.
I live in
In the name of Allah, Most Gracious, Most Merciful
Assalaamu `alaykum waRahmatullahi Wabarakatuh
It is not permissible to earn interest money. If interest is earned through a sale, loan, or a similar transaction, then the transaction is not valid and it is necessary to return the interest money to the one who paid it. If this is not possible, then it must be given to the poor and the needy without the intention of thawāb (Fatāwā Rahīmiyyah 9/270; Ishā’at).
Hence, if one is capable of safeguarding his money where it does not accumulate interest, such as an interest-free bank account, then it would not be permissible for him to deposit his money in an interest-bearing account. However, if no such alternatives are feasible, then it would be permissible to deposit money in an interest-bearing account due to the necessity of safeguarding one’s wealth (Fatāwā Mahmūdiyyah 16/12; Fārūqiyyah).
فالعقد فاسد للربا ووجب نقضه لحق الشرع
(شرح المجلة 2/443، أحكام الربا؛ رشيدية)
الواجب حقا للشرع رد عين الربا لو قائما لا رد ضمانه
(البحر الرائق 6/125، باب الربا؛ رشيدية)
وإنما الذي يجب حقا للشرع رد عين الربا إن كان قائما لا رد ضمانه
(رد المحتار 5/169، باب الربا، مطلب في الإبراء عن الربا؛ سعيد)
And Allah Ta’ala Knows Best
Wassalamu Alaykum
Ml. Abrar Mirza
Student Darul Iftaa
Checked and Approved by:
Mufti Ebrahim Desai
Darul Iftaa, Madrassah In’aamiyyah