Depositing in the bank and borrowing from it
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The first question of Fatwa number ( 1670 )
Q1: Is it permissible for a Muslim to deal with the current banks that give an increase on the capital or provide the borrower with an increase?
A1 : It is not permissible for a person to deposit his money with a bank, and the bank gives him a guaranteed annual increase—for example—and it is also not permissible to borrow from the bank on the condition that he pays it an increase, at the time they agree upon to pay back the borrowed money, such as paying it an increase of five percent upon repayment. These two cases fall under the general evidence for the prohibition of riba from the Book, the Sunnah, and scholarly consensus, and this is clear, praise be to Allah. As for dealing with banks for the safekeeping of money without profit and for transfers, as for the safekeeping of money without profit; if he is not compelled
to place it in the bank, it is not permissible for him to place it there; because of what that entails of assisting the bank owners in using it in riba, and Allah the Exalted said:[Al-Ma'idah 5:2] , and if dire necessity calls for it, we do not know of any harm in that, if Allah wills. As for transferring money from one bank to another, even if the transferring bank takes an additional fee, it is permissible; because the increase that the bank takes is a fee for it in exchange for the transfer operation.
Q1: Is it permissible for a Muslim to deal with the current banks that give an increase on the capital or provide the borrower with an increase?
A1 : It is not permissible for a person to deposit his money with a bank, and the bank gives him a guaranteed annual increase—for example—and it is also not permissible to borrow from the bank on the condition that he pays it an increase, at the time they agree upon to pay back the borrowed money, such as paying it an increase of five percent upon repayment. These two cases fall under the general evidence for the prohibition of riba from the Book, the Sunnah, and scholarly consensus, and this is clear, praise be to Allah. As for dealing with banks for the safekeeping of money without profit and for transfers, as for the safekeeping of money without profit; if he is not compelled
to place it in the bank, it is not permissible for him to place it there; because of what that entails of assisting the bank owners in using it in riba, and Allah the Exalted said:
And cooperate in righteousness and piety, but do not cooperate in sin and aggression.
وَتَعَاوَنُوا عَلَى الْبِرِّ وَالتَّقْوَى وَلاَ تَعَاوَنُوا عَلَى الإِثْمِ وَالْعُدْوَانِ
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.