The Ruling on Depositing in Interest-Based Banks Without Taking Interest
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Question: What is the Islamic ruling on one who deposits his money in banks and does not take interest?
Answer: It is not permissible to deposit in interest-based banks for interest, nor to take loans with interest; because that is explicit usury (riba). It is also not permissible to deposit in non-bank institutions with interest, and likewise, it is not permissible to take a loan from anyone with interest. In fact, that is forbidden according to all scholars; because Allah the Exalted says: [al-Baqarah:275], and He the Exalted says: [al-Baqarah:276], and He the Exalted says: [Al-Baqarah 2:278] فَإِن لَّم تَفْعَلُواْ فَاذَّنُوا بِحَرْبٍ مِّنَ اللَّهِ وَرَسُولِهِ وَإِن تُبْتُمْ فَلَكُمْ رُءُوسُ أَمْوَالِكُمْ لَا تَظْلِمُونَ وَلَا تُظْلَمُونَ [al-Baqarah:278-279], then He the Exalted says after all of this: [al-Baqarah:280] the verse. By this, He alerts His servants that it is not permissible to demand from the one who is unable to pay what he owes, nor to burden him with additional money in order to grant him a delay. Rather, it is obligatory to grant him a delay until he is able to pay, without any increase; because of his inability to settle the debt. And that is from the mercy of Allah the Exalted for His servants, His kindness to them, and His protection of them from injustice and greed that harms them and does not benefit them.
As for depositing in banks without interest, there is no harm in it if the Muslim is in dire necessity for it.
Answer: It is not permissible to deposit in interest-based banks for interest, nor to take loans with interest; because that is explicit usury (riba). It is also not permissible to deposit in non-bank institutions with interest, and likewise, it is not permissible to take a loan from anyone with interest. In fact, that is forbidden according to all scholars; because Allah the Exalted says:
But Allah has permitted trade and has forbidden interest
وَأَحَلَّ اللّهُ الْبَيْعَ وَحَرَّمَ الرِّبَاAllah destroys riba (usury or interest) and multiplies alms
يَمْحَقُ اللّهُ الْرِّبَا وَيُرْبِي الصَّدَقَاتِO 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 if someone is in hardship, then [let there be] postponement until [a time of] ease
وَإِن كَانَ ذُو عُسْرَةٍ فَنَظِرَةٌ إِلَى مَيْسَرَةٍAs for depositing in banks without interest, there is no harm in it if the Muslim is in dire necessity for it.
Source
binbaz.org.sa
The Arabic text is copied verbatim from the original source, without any edits.