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Using interest to offset bank charges and disposing of interest money

Q: I have both a Current Account as well as a Savings Account at the same bank. On both the accounts, the bank levies bank charges but the Savings Account is interest bearing.

In this situation, can the charges levied on both accounts by the bank be offset against the interest received on the Savings Account and then only dispose off the balance of the interest remaining?

Secondly, to whom should the interest be given? Can it be given to non-Muslims and even to street beggars or beggars knocking on doors every week?

Alternatively, can the interest be given to Darul Ulooms to assist poor students who cannot afford any fees?


A: Interest cannot be used to pay for valid services of the bank.

This money is filthy wealth which should be disposed off  by giving it to any poor person whether Muslim or non Muslim without the intention of receiving any reward.

And Allah Ta’ala (الله تعالى) knows best.


Answered by:

Mufti Zakaria Makada

Checked & Approved:

Mufti Ebrahim Salejee (Isipingo Beach)

This answer was collected from MuftiOnline.co.za, where the questions have been answered by Mufti Zakaria Makada (Hafizahullah), who is currently a senior lecturer in the science of Hadith and Fiqh at Madrasah Ta’leemuddeen, Isipingo Beach, South Africa.

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