Transactions & Dealings >> Interest & Insurance

Question # : 163029

United Arab Emirates

I Just want to ask that what is the correct way to pay interest which comes in my saving bank account every quarter of the year. To whom can I give that money, and what should be the intention at the time of giving. Is it right to give it in Ramadan so that person can use it in Iftar or Eid preparation or any other need. The person to whom we are giving that money, can he use that money in his food, clothing or any need or there is any specific area where he can use that money. (Somebody told me that interest can be use to pay interest only, it can't be use to fulfill any other need.)

Answer : 163029

Published on: Oct 16, 2018

بسم الله الرحمن الرحيم



(Fatwa: 1310/167/Tatimmah/B=12/1439)



 



The interest money which one receives from any government bank account may be paid in income tax (taxes which are forcefully imposed on people). Similarly, it could also be given to any poor without the intention of reward. The poor may use the money in whatsoever need he wishes. Interest money cannot be used in any other place. The stand of your friend that interest money cannot be used in any other place except paying interest is not completely right as interest received from government bank cannot be used in paying the interest of private bank and vice versa. Yes, you may pay interest received from government bank in the interest of government bank. Similarly, interest received from private bank may be used in paying the interest of private bank provided both private banks belong to the same company.



 



ويردونها على أربابها إن عرفوهم وإلا تصدقوا بها : لأن سبيل الكسب الخبيث التصدق إذا تعذر الرد على صاحبه . (شامى 9/553، زكريا)




Allah knows Best!


Darul Ifta,
Darul Uloom Deoband

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