The Ruling on Investing Money in Banks with Usurious Interest
Machine translationRead the Arabic original
Question:
What is the ruling on investing money in banks, given that these banks pay interest for depositing money with them?
Answer:
It is well known among the scholars of Islamic sacred law that investing money in banks with usury or interest is forbidden by the Shari'ah, a major sin, and a declaration of war against Allahand His Messenger (peace and blessings be upon him), as Allah the Exalted said::[Al-Baqarah 2:275] Allah destroys usury and increases charity, and Allah does not love every sinful disbeliever[Surat al-Baqarah: 275-276].
And He, the Exalted, said:[Al-Baqarah 2:278] So if you do not, then be informed of a war from Allah and His Messenger. And if you repent, then yours is the principal of your wealth; you do not wrong, nor are you wronged [Surat al-Baqarah: 278-279].
And it is authentic from the Messenger of Allah (peace and blessings be upon him):Sahih Muslim 1598. It was narrated by Muslim in his Sahih.
And al-Bukhari narrated in his Sahih from Abu Juhayfah (may Allah be pleased with him) :Sahih al-Bukhari 2086.
And in the two Sahihs, from Abu Hurayrah (may Allah be pleased with him)from the Prophet (peace and blessings be upon him), that he said:Sunan Abi Dawud 2874Sahih (Al-Albani).
The verses and hadiths in this meaning—which is the prohibition of usury and warning against it—are very numerous.
So it is obligatory for all Muslims to abandon it, be cautious of it, and advise one another to abandon it.
It is obligatory for the Muslim rulers to prevent those in charge of banks in their lands from doing this, and to compel them to abide by the ruling of the pure Shari'ah; in order to implement the ruling of Allah and to guard against His punishment. He the Exalted said:[Al-Ma'idah 5:78] They used not to prevent one another from doing what they did of evil; how evil was what they used to do[Surat al-Ma'idah: 78-79], and He the Exalted said:: [At-Tawbah 9:71] the verse [Surat al-Tawbah: 71], and he (peace and blessings be upon him) said:Musnad Ahmad 1Sahih (Darussalam). And the verses and hadiths regarding the obligation of enjoining good and forbidding evil are numerous and well known.
So we ask Allah for all Muslims, rulers and ruled, scholars and common people, success in adhering to His Shari'ah, standing firm upon it, and being cautious of everything that contradicts it; indeed, He is the best of those asked.
What is the ruling on investing money in banks, given that these banks pay interest for depositing money with them?
Answer:
It is well known among the scholars of Islamic sacred law that investing money in banks with usury or interest is forbidden by the Shari'ah, a major sin, and a declaration of war against Allahand His Messenger (peace and blessings be upon him), as Allah the Exalted said::
Those who consume interest cannot stand [on the Day of Resurrection] except as one stands who is being beaten by Satan into insanity. That is because they say, "Trade is [just] like interest." But Allah has permitted trade and has forbidden interest. So whoever has received an admonition from his Lord and desists may have what is past, and his affair rests with Allah. But whoever returns to [dealing in interest or usury] - those are the companions of the Fire; they will abide eternally therein.
الَّذِينَ يَأْكُلُونَ الرِّبَا لاَ يَقُومُونَ إِلاَّ كَمَا يَقُومُ الَّذِي يَتَخَبَّطُهُ الشَّيْطَانُ مِنَ الْمَسِّ ذَلِكَ بِأَنَّهُمْ قَالُواْ إِنَّمَا الْبَيْعُ مِثْلُ الرِّبَا وَأَحَلَّ اللّهُ الْبَيْعَ وَحَرَّمَ الرِّبَا فَمَن جَاءهُ مَوْعِظَةٌ مِّن رَّبِّهِ فَانتَهَىَ فَلَهُ مَا سَلَفَ وَأَمْرُهُ إِلَى اللّهِ وَمَنْ عَادَ فَأُوْلَئِكَ أَصْحَابُ النَّارِ هُمْ فِيهَا خَالِدُونَ And He, the Exalted, said:
O you who have believed, fear Allah and give up what remains [due to you] of interest, if you should be believers.
يَا أَيُّهَا الَّذِينَ آمَنُواْ اتَّقُواْ اللّهَ وَذَرُواْ مَا بَقِيَ مِنَ الرِّبَا إِن كُنتُم مُّؤْمِنِينَ And it is authentic from the Messenger of Allah (peace and blessings be upon him):
that Allah's Messenger (ﷺ) cursed the accepter of interest and its payer, and one who records it, and the two witnesses, and he said: They are all equal.
أنه لعن آكل الربا، وموكله، وكاتبه، وشاهديه، وقال: هم سواءAnd al-Bukhari narrated in his Sahih from Abu Juhayfah (may Allah be pleased with him) :
receiving or giving Riba, (usury), and cursed the picture-makers.
أن النبي ﷺ لعن آكل الربا، وموكله، ولعن المصورAnd in the two Sahihs, from Abu Hurayrah (may Allah be pleased with him)from the Prophet (peace and blessings be upon him), that he said:
Refrain from seven (characteristics) which cause destruction. He was asked: What are they, Messenger of Allah ? He replied: To assign partner to Allah, magic, to kill a soul (man) which is prohibited by Allah except for which is due, to take usury, to consume the property of an orphan, to retreat on the day of the battle, and to slander chaste women, indiscreet but believing.
اجتنبوا السبع الموبقات، قلنا: وما هن يا رسول الله؟ قال: الشرك بالله، والسحر، وقتل النفس التي حرم الله إلا بالحق، وأكل الربا، وأكل مال اليتيم، والتولي يوم الزحف، وقذف المحصنات الغافلات المؤمناتThe verses and hadiths in this meaning—which is the prohibition of usury and warning against it—are very numerous.
So it is obligatory for all Muslims to abandon it, be cautious of it, and advise one another to abandon it.
It is obligatory for the Muslim rulers to prevent those in charge of banks in their lands from doing this, and to compel them to abide by the ruling of the pure Shari'ah; in order to implement the ruling of Allah and to guard against His punishment. He the Exalted said:
Cursed were those who disbelieved among the Children of Israel by the tongue of David and of Jesus, the son of Mary. That was because they disobeyed and [habitually] transgressed.
لُعِنَ الَّذِينَ كَفَرُواْ مِن بَنِي إِسْرَائِيلَ عَلَى لِسَانِ دَاوُودَ وَعِيسَى ابْنِ مَرْيَمَ ذَلِكَ بِمَا عَصَوا وَّكَانُواْ يَعْتَدُونَ The believing men and believing women are allies of one another. They enjoin what is right and forbid what is wrong
وَالْمُؤْمِنُونَ وَالْمُؤْمِنَاتُ بَعْضُهُمْ أَوْلِيَاء بَعْضٍ يَأْمُرُونَ بِالْمَعْرُوفِ وَيَنْهَوْنَ عَنِ الْمُنكَرِlf the people see evil and do not change it, soon Allah will send His punishment upon them all.
إن الناس إذا رأوا المنكر فلم يغيروه، أوشك أن يعمهم الله بعقابهSo we ask Allah for all Muslims, rulers and ruled, scholars and common people, success in adhering to His Shari'ah, standing firm upon it, and being cautious of everything that contradicts it; indeed, He is the best of those asked.
Source
binbaz.org.sa
The Arabic text is copied verbatim from the original source, without any edits.