Question:

Brother is storing your money in a bank which does interest, however, I do not accept the interest. So, is it haram?

Answer:

In the Name of Allah, the Most Gracious, the Most Merciful.

As salāmu ‘alaykum wa rahmatullāhi wa barakātuh.

Allah taʻālā has forbidden interest (ribā’) harshly and in no uncertain terms:

الَّذِينَ يَأْكُلُونَ الرِّبَا لَا يَقُومُونَ إِلَّا كَمَا يَقُومُ الَّذِي يَتَخَبَّطُهُ الشَّيْطَانُ مِنَ الْمَسِّ ۚ ذَٰلِكَ بِأَنَّهُمْ قَالُوا إِنَّمَا الْبَيْعُ مِثْلُ الرِّبَا ۗ وَأَحَلَّ اللَّهُ الْبَيْعَ وَحَرَّمَ الرِّبَا

Those who consume interest will stand ˹on Judgment Day˺ like those driven to madness by Shayṭān’s touch. That is because they say, “Trade is no different than interest.” But Allah has permitted trading and forbidden interest. (Al-Baqarah 275)

Likewise, the Companion Jābir (raḍiy Allāhu ‘anh) said, “Allah’s Messenger ﷺ cursed the taker of interest and (similarly) its giver, the one who records it, and the witnesses to it. They are all equal.” Thus, the mere agreement of an interest-bearing account is sinful. Muslims are to avoid it as much as possible. If they find themselves afflicted by it, they should seek forgiveness from Allah and take immediate steps to be rid of it.

In our times, particularly in North America, most people will find that a bank account is unavoidable for deposits and transactions since people are no longer paid wages in cash and credit card transactions are ubiquitous. Due to this situation, Muslims may open a non-interest checking account for their needs. If you have an interest-bearing account, transfer the funds to a non-interest account immediately and give away any interest earned on those funds without the intent for reward.[1]

And Allah taʻālā knows best,

Maulana Mateen Khan
New Jersey, USA

Checked and Approved by:

Mufti Faisal bin Abdul Hamīd al-Mahmudi
Darul Iftaa Canada (fatwa.ca)

[1] الصحيح لمسلم، مسلم بن الحجاج أبو الحسن القشيري النيسابوري، دار إحياء التراث العربي (الشاملة)، 3:1219
حدثنا محمد بن الصباح، وزهير بن حرب، وعثمان بن أبي شيبة، قالوا: حدثنا هشيم، أخبرنا أبو الزبير، عن جابر، قال: «لعن رسول الله صلى الله عليه وسلم آكل الربا، ومؤكله، وكاتبه، وشاهديه»، وقال: «هم سواء»

 محمود الفتاوى، مكتبة محمودية، ج 6:

حفاظت کے خاطر بینک میں رقم جمع کرنا، ص 65

بینک میں رقم جمع کرنا اور سود نہ لینا، ص 66

فتاوی عثمانیہ، مکتبہ معارف القران کراچی، 3:267