The Ruling on Taking Bank Interest and Giving It in Charity to the Poor

Question:
Is it permissible to take bank interest and give it to the poor who are in need?

Answer:
It is not permissible to deal with the bank in riba (usury or interest), but if one has done so, he must repent, take back his principal, and if he took something extra, he may give the surplus in charity to the poor and those in need, or for repairing bathrooms, or roads, or the like. However, he should only take back his principal; as for the surplus, he must not eat it or enjoy it, but if he spends it in the causes of righteousness, such as the poor and the needy, and the rest... If a man dies and he has a debt, and his children undertake this debt, is he held accountable for it, or is his soul cleared of it? No, he is not considered a disbeliever until after harm is inflicted until it is paid. If his children pay it off for him, harm is inflicted upon him. The Messenger (peace and blessings be upon him) said: If his descendants or others pay it off for him, harm is inflicted upon him in the sight of Allah.