Q1) Is it halal to put money in a bank account which is with a non Islamic bank because the bank will use that money to lend to others and then earn interest on that money which is haram.
Answer
Assalāmuʿalaikum Wa Raḥmatullāhī Wa Barakātuh,
In principle, it is not permissible to deposit one’s money into an interest-bearing account.
There are two problematic factors in depositing one’s money into a commercial bank:
- The aiding of the commercial banking system, which is premised on unlawful gain.
- The interest that is accrued and disposed of between the bank and their clients.
We, therefore, advise that as much as possible one should abstain from the banking system.
If, however, there is a need for one to deposit money into an account within the commercial banking system, then one should opt for the Sharī’āh-Compliant accounts (which are found in some countries), or at least any account which is free from the element of interest.
As a last resort, if one has no other option and it is a situation which cannot be avoided, then when depositing one’s money into an account, one should ensure that every cent of interest accrued therefrom be disposed of to the poor and needy without the intention of gaining any rewards since one may benefit in any way from unlawful gain. The objective is merely to rid the burden of possessing such wealth.
Lastly, there exist some banks which offer such accounts that do not accrue interest whilst no bank charges are levied on them. This is an alternative that could be considered in the event of there being a necessity in this regard.
And Allaah Ta’aala knows best
Wassalaam,
Ismail Moosa (Mufti)
References
Contemporary Fataawa Pg.160 by Mufti Taqi Usmani
أحسن الفتاوى (7/14)
فتاوى رحيميہ (2/192)
فتاوى محموديه (4/200)