What is the ruling on placing and depositing money in banks, given that I do not feel safe keeping it at home?
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The questioner : Your Eminence, the Shaykh, I mean one of the Shaykhs!
The Shaykh : Huh?
The questioner : Some of the Shaykhs advised me to withdraw my money, or all my money that is in the banks, from shares and such. If I put it at home, I do not feel safe about it. What is your opinion on that?
The Shaykh : My opinion on that is that putting money in banks falls into two categories:
The first category is that one takes riba (usury or interest). For example, he gives the bank ten thousand riyals, and after a year he takes eleven thousand from it. This is not permissible because it is explicit riba (usury or interest).
The second category is that he puts it in the bank and does not take riba (usury or interest). In this case, it is better that he not put it in the bank, because if he puts it in the bank, the bank expands, its wealth increases, and its riba-based (usury or interest-based) profits multiply. However, if he needs to do so, such as if he fears for his money at home, there is no blame on him for putting it in the bank, but he must not take anything extra beyond what he deposited. Let him know that some people call this a deposit (wadi'ah), but it is not truly a deposit; rather, it is a loan. Because you give your money to the bank, and it puts it in its vault and benefits from it. In a true deposit, the depositary does not benefit from it; the deposit remains as it is until its owner comes and asks for it.
To summarize the answer, I say to you: If you need to put it in the bank, there is nothing wrong with it. And if you are able to keep it safe without the bank, that is better and more excellent. Yes.
The Shaykh : Huh?
The questioner : Some of the Shaykhs advised me to withdraw my money, or all my money that is in the banks, from shares and such. If I put it at home, I do not feel safe about it. What is your opinion on that?
The Shaykh : My opinion on that is that putting money in banks falls into two categories:
The first category is that one takes riba (usury or interest). For example, he gives the bank ten thousand riyals, and after a year he takes eleven thousand from it. This is not permissible because it is explicit riba (usury or interest).
The second category is that he puts it in the bank and does not take riba (usury or interest). In this case, it is better that he not put it in the bank, because if he puts it in the bank, the bank expands, its wealth increases, and its riba-based (usury or interest-based) profits multiply. However, if he needs to do so, such as if he fears for his money at home, there is no blame on him for putting it in the bank, but he must not take anything extra beyond what he deposited. Let him know that some people call this a deposit (wadi'ah), but it is not truly a deposit; rather, it is a loan. Because you give your money to the bank, and it puts it in its vault and benefits from it. In a true deposit, the depositary does not benefit from it; the deposit remains as it is until its owner comes and asks for it.
To summarize the answer, I say to you: If you need to put it in the bank, there is nothing wrong with it. And if you are able to keep it safe without the bank, that is better and more excellent. Yes.