Assalaamu Alaikum I hope this email reaches you whilst you are in the best of Imaan and health. We run a small charity in the UK. I would like to know a few things regarding interest money. 1. We have a business account in the name of the charity which we use for incoming donations. I would like to know whether it is permissible to open a savings account with the sole intention of generating more interest money. 2. As we have a business account, the bank charges the charity for its services. I would like to know whether it is permissible for us to use interest money which we receive from the bank or interest money which we receive in donations to pay off these bank charges. 3. Is it permissible to use donation interest money to pay off the following, Charity car/van insurance, Business insurance, PAYE Employers tax, Please kindly respond and provide me with the answers to the following questions. May Allah accept your efforts and grant you the best of rewards for your work in this world and in the hereafter. JazakAllah Assalaamu Alaikum
Answer
(Fatwa: 331/H242/H=1432)
(1) It is haram (prohibited) to open saving account with this intention.
(2) It is haram to use interest therein.
(3) It is not lawful. Rather the interest amount should be given in charity to the poor and needy ones without the intention of reward.
Allah (Subhana Wa Ta’ala) knows Best
Darul Ifta,
Darul Uloom Deoband