They call the funds deposited in banks (a deposit) and the bank trades with them; what is the validity of this designation?
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Question:
Honorable Shaykh, may Allah grant you success, he says: The banks where funds are deposited call them a deposit, and they deal with them through trade and business. He says: Is this designation valid? Is it a Shari'ah designation?
Answer:
In reality, it is not a deposit. A deposit is that they keep it with them and return it to its owner in its original form. That is the deposit. As for them dealing with it and investing it for themselves, this is not permissible for them. They also invest it in riba (usury or interest). Even if they invest it in something permissible, they invest it through riba, may Allah protect us from that. This is not permissible. Yes.
Honorable Shaykh, may Allah grant you success, he says: The banks where funds are deposited call them a deposit, and they deal with them through trade and business. He says: Is this designation valid? Is it a Shari'ah designation?
Answer:
In reality, it is not a deposit. A deposit is that they keep it with them and return it to its owner in its original form. That is the deposit. As for them dealing with it and investing it for themselves, this is not permissible for them. They also invest it in riba (usury or interest). Even if they invest it in something permissible, they invest it through riba, may Allah protect us from that. This is not permissible. Yes.
Source
قناة «العلامة الدكتور صالح الفوزان»، [1911 -3022] يسمون الأموال التي توضع في البنوك(وديعة)ويتصرف البنك فيها بالتجارة فما صحة هذه التسمية؟ — youtube.com
The Arabic text is a machine transcription of the audio recording.