Walaykum Alsalam
Dear brother in Allah...
that is ur Question answer insha` Allah
If there is a person who deals in riba (interest/usury), then repents and wants to get rid of the money he gained from riba, it is permissible for him to give it to the poor in order to get rid of it. A person can also do likewise if an amount of riba is put into his account by the bank, but this is not counted as sadaqah (charity), because Allaah is Good and only accepts that which is good and pure. As for continuing to deal in riba, this is not permissible, because it is one of the major sins (kabaa’ir), and taking it is tantamount to challenging Allaah and His Messenger, even if one is dealing in riba in order to give it to the poor.
Islam Q&A
Sheikh Muhammed Salih Al-Munajjid
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and u should know that
Putting money in the bank in return for interest is a major sin, and it is not permissible to put money in the bank in order to get interest to use for charitable projects, let alone benefit from it oneself.
If a Muslim has put his money in a riba-based bank, then Allaah guides him and he repents from riba, then he has to get rid of the interest by donating it to charitable causes,
because Allaah says (interpretation of the meaning):
“O you who believe! Be afraid of Allaah and give up what remains (due to you) from Ribaa (from now onward) if you are (really) believers.
279. And if you do not do it, then take a notice of war from Allaah and His Messenger but if you repent, you shall have your capital sums. Deal not unjustly (by asking more than your capital sums), and you shall not be dealt with unjustly (by receiving less than your capital sums)”
[al-Baqarah 2:278, 279]
It is not permissible for him to benefit from it, either by paying taxes with it or doing anything else that will bring him benefit.
putting money in a riba-based bank and taking more money than the original capital. The scholars of the Standing Committee said:
The interest which the bank pays to depositors on the money that they deposit is considered to be riba (usury, interest), and it is not permissible to make use of this money. The person must repent to Allaah from depositing money in riba-based banks, he should withdraw the money that he deposited and the interest, then keep his original amount and spend the interest in charitable causes, such as on the poor and needy, renovating public facilities, and so on.
Fataawa Islamiyyah, 2/404.
Shaykh ‘Abd al-‘Azeez ibn Baz (may Allaah have mercy on him) said:
With regard to the interest that the bank gives you, do not give it back to the bank and do not consume it, rather spend it on charitable causes such as giving it to the poor, renovating public washrooms, and helping debtors who are unable to pay off their debts.
Fataawa Islamiyyah, 2/407
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Depositing your’s money ...
Shaykh ‘Abd al-‘Azeez ibn Baaz (may Allaah have mercy on him) said:
With regard to depositing money in bank accounts that pay interest monthly or annually, this is a kind of riba that is forbidden according to scholarly consensus. With regard to depositing it without interest, it is better not to do that except in cases of necessity if the bank deals with interest, because depositing money with the bank, even if no interest is paid, helps the bank to engage in its riba-based transactions, so there is the fear that the one who does this may come under the heading of those who help others in sin and transgression, even if he does not intend to do so. We must beware of that which Allaah has forbidden and look for sound ways of preserving and disposing of wealth. May Allaah help the Muslims to do that which will lead to their happiness and victory and salvation. May He help them to quickly establish Islamic banks that are free of riba, for He is Able to do that. May Allaah send blessings and peace upon our Prophet Muhammad and his family and companions.
Fataawa Ibn Baaz, 4/30, 311
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And Allaah knows best.
<wasalam Alykum>
