Interest money received on saving account is haram. It is wajib to give the haram money in charity to the poor and needy ones. As it is necessary to take out zakah money from one’s own possession and give to to needy ones, in the same way it is necessary to give the haram money in the possession of the needy ones. It is not lawful to utilize it for public welfare, since tamlik (giving in possession) is missing in constructing general graveyard boundary and using in public services.
Allah (Subhana Wa Ta’ala) knows Best
Darul Uloom Deoband