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﴿ فَاسْأَلُوا أَهْلَ الذِّكْرِ إِن كُنتُمْ لَا تَعْلَمُونَ ﴾

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What is the ruling on interest money that comes out of depositing money?

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Question:
The questioner says: I had a sum of money and I deposited it in one of the banks for a period of two years. After I learned about the punishment for the one who consumes riba (usury or interest) and its prohibition, I withdrew it from the bank. At that time, there was interest on it, so I distributed this interest amount among my relatives, and I gave from this amount to everyone I saw in need. My intention is to give away the entire amount, and I do not use this amount for my personal purposes. What is your guidance? Please inform me, may Allah reward you.

Answer:
It is obligatory not to deal in this manner. If you are compelled to make a deposit, it should be with you as a deposit without riba. If you deposit with others, first look for another place to deposit your money where you can stay away from deposits in banks, unless you are compelled to make it a deposit without any increase. If it is possible to have it in a locked safe that they keep for you so that you do not assist them in riba, that is better and purer. If they give you something without you stipulating anything, then what they gave you by way of riba, give it to the poor, the needy, and those in need, and do not take anything from it for yourself, nor give it to one who does not deserve it. Give it to the poor and to projects of good, because this is earnings in which there is no good, and they gave it to you by their method of riba. As for if a person lends to another person not by way of riba, such as a person lending his brother his money and giving him an increase in appreciation of his kindness, there is no harm. The best of people are the best in repaying a loan. If you lend one of your brothers one thousand riyals and he gives you one thousand and one hundred as a known increase from his wealth on account of your kindness to him, there is no harm. But the people of riba do not do this for that reason; the people of riba do it for the issue of exchange, the consideration, so they give it as a consideration by their method which they have followed. This is what one must stay away from. As for if one of your brothers lends to you between you and him and gives you an increase, or you lend to him and he gives you a known increase from him, there is no blame. We are the best of people in repaying a loan. It was narrated from him (peace and blessings be upon him) that he borrowed thirty wasqs and gave sixty, or perhaps he borrowed forty and asked and gave him eighty, so I know it from him (peace and blessings be upon him). Yes.
Source قناة «فضيلة الشيخ ابن باز Alsheikh Binbaz»، 437 ما حكم أموال الفائدة التي تخرج من إيداع الأموال؟ للإمام ابن باز — youtube.com

The Arabic text is a machine transcription of the audio recording.

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