Is it permissible to deposit money in interest-based banks? And what is the ruling on taking what is called interest?
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The Shaykh : And this is also a case where the thing reminds one of the thing. They deposit their money, and the best of them is the one who deposits his money without taking interest on it. The interest you hardly ever hear about, whereas the "interest" (fayda') is like the righteous man who says: "I am compelled to deposit my money, but I do not take interest on it." We substitute the Qur'anic expression here. Here the "interest" is not there, and here the "interest" is in the context of the previous verse: [Al-Ma'idah 5:2] He (peace be upon him) said: The Prophet (peace and blessings be upon him) limited himself to saying: "I deposit my money in the bank to preserve it, and I take interest on it." The one who deposits his money in the bank merely to preserve it has made a mistake. The one who deposits his money in the bank merely to preserve it has made two mistakes: the first is in action, and the second is in speech. Placing the money in the bank is an action; this is an action.
The student : Yes, that is right.
The Shaykh : Ah, the other mistake is when he says, "I do not take interest on it..." That is one practical mistake. And without a doubt, the practical mistake is more dangerous in the sight of Allah and greater than the verbal mistake. Do you all know that shirk (associating partners with Allah) is practical shirk and verbal shirk? Do you know this?!
The questioner : Yes, yes.
The Shaykh : And so it is with all matters; every sin is divided into a practical mistake and a verbal mistake. The rich man who deposits his money in the bank and says, "I deposited my money in the bank and I do not take interest on it," we know that he has made two mistakes: a practical mistake and a verbal mistake. And the one who says, "I deposited my money in the bank and I do not take riba (usury) on it," has made a mistake... His speech is like that of the one who consumes riba. His speech is like that of the one who consumes riba. Why? Because the Messenger (peace and blessings be upon him), and here is the point, said:Sahih Muslim 1598 And this is also part of the complete parenthetical sentence... riba, of course... and the one who sells it, and the one who buys it, and the one who carries it, and the one to whom it is carried... and it followed you...
but do not cooperate in sin and aggression
وَلَا تَعَاوَنُوا عَلَى الْإِثْمِ وَالْعُدْوَانِMay Allah curse the one who consumes riba, the one who is given riba, the one who writes it, and the two witnesses to it.
لَعَنَ الله الربا ، آكله ، ومؤكله ، وكاتبه ، وشاهديهThe student : Yes, that is right.
The Shaykh : Ah, the other mistake is when he says, "I do not take interest on it..." That is one practical mistake. And without a doubt, the practical mistake is more dangerous in the sight of Allah and greater than the verbal mistake. Do you all know that shirk (associating partners with Allah) is practical shirk and verbal shirk? Do you know this?!
The questioner : Yes, yes.
The Shaykh : And so it is with all matters; every sin is divided into a practical mistake and a verbal mistake. The rich man who deposits his money in the bank and says, "I deposited my money in the bank and I do not take interest on it," we know that he has made two mistakes: a practical mistake and a verbal mistake. And the one who says, "I deposited my money in the bank and I do not take riba (usury) on it," has made a mistake... His speech is like that of the one who consumes riba. His speech is like that of the one who consumes riba. Why? Because the Messenger (peace and blessings be upon him), and here is the point, said:
Allah's Messenger (ﷺ) cursed the accepter of interest and its payer, and one who records it, and the two witnesses
لَعَنَ اللهُ آكل الربا ، ومؤكله ، وكاتبه ، وشاهديه
Source
www.al-albany.com
The Arabic text is copied verbatim from the original source, without any edits.