Q: The area my sister lives in has security booms. They held my parents up, so an appeal was made to the residents committee to move the booms. They however, do not have sufficient funds. Can my sister dispose of her interest money to the residents committee?
A: If this is used in the general welfare of the public (public amenity where poor and rich both benefit) then according to some Ulama this can be used for this. However, it is better and safer to give the interest away in charity to the poor and needy.
And Allah Ta’ala Knows Best
Aadiel Moosagie (Mufti)