I understand that we should avoid putting our money in interest bearing accounts because the interest is haram. However, is it wrong to do it if we dispose the interest by donating it to poor countries? Isn’t this a way of helping the poor too? There are so many poor countries that need money and one way we can give more would be to give away the interest earned besides just from our halal money.
Answer:
In the Name of Allah, the Most Gracious, the Most Merciful.
There are two separate sins involved when receiving interest: 1) receiving interest 2) consuming interest. If a person keeps his money in an interest bearing account but he does not consume the interest that he receives and instead gives it to the poor, he will still be guilty of committing a sin: the sin of receiving interest. Therefore, it is not permissible to deposit one’s money in an interest bearing account, even if one intends to give the interest money that he will receive to the poor. One should help the poor people by giving them charity from his halal money.
And Allah knows best.
Mufti Faizal Riza
9/1/2012