Dealing with interest or "Riba"

[maryjo]

Suppose a person had $10,000 in a savings account in the bank. He didn't deposit or withdraw a penny from it for an entire year.

At the begiining of the new year this person wanted to deduct the interest he received to give it away.

So he obtained an updated bank statement, and saw that each month $1 was withdrawn (as taxes), and $10 were added (as interest). The current balance is $10,110.

Now here's the question, should he remove any cent above the $10,000 he originally put in (that would be $110) OR should he add up all the interest money regardless of his balance and taxes (that would be $120)?

Please does anyone know the answer???

 

[Asja]

Assalamu Allaicomu dear brother

Can you please explain us better dear brother on which base bank client got 110$ more on his account in Bank???

I am not sure brother but do you mean that he took interest from bank for holding his money???

May Allah bless you

 

[Tabassum07]

I'd like to know the answer too, I mean, if there isn't any Islamic bank in our area, and we have to use the banks, but we don't want to use the interest, what I've seen many people do is take out the interest money and give it to the poor.

 

[habib786]

as far as i know any form of riba(interest) is haram, but when we deposit in the bank and the bank gives us interest on the saving amount is also riba and that should not be utilised ... but some people take that interest money and give out to needy people and some ask the bankers to give it to whom they deem fit .. like mercy home and institutions like that, my conscious says that if we take the interest generated from the saving then its like accepting the amount even though later we give it to needy people, so i thought the best way to avoide that is ask the bankers to take it from the account and give it to them and let them do what they think best.. that is what my thought is and that is how i handle with my bankers .... hope someone in this forum may shed more light on this matter and suggest if what i said suits my deen ..............

Allah hafiz

 

[IbnAdam77]

Suppose a person had $10,000 in a savings account in the bank. He didn't deposit or withdraw a penny from it for an entire year.

At the begiining of the new year this person wanted to deduct the interest he received to give it away.

So he obtained an updated bank statement, and saw that each month $1 was withdrawn (as taxes), and $10 were added (as interest). The current balance is $10,110.

Now here's the question, should he remove any cent above the $10,000 he originally put in (that would be $110) OR should he add up all the interest money regardless of his balance and taxes (that would be $120)?

Please does anyone know the answer???

assalam 'alaikum warahmatullah

Thank is to Allah (swt) for providing us a perfect Sharee'ah which can deal with EVERY situation we face.

Regarding the question that you asked, definitely it contains Riba. Although the question seems confusing because of that $110 you mentioned, let me see if I understood it correctly. If $10 is added to the account in each month, there will be $120 as Riba ($10 times 12 months). Therefore we need to deduct that amount and can use only the remaining amount. No worries about the tax, as that is already paid as an expense. When we deduct both Tax and Riba from that amount, there will be (10,120-120-12) $9,988. Scholars say that we cannot use the Riba money as Sadaqa, or for our own expanses. The only solution they say is to put it in funds which is made to build roads, schools etc with the Niyah (intention?) not to help, but to escape from a sin. Also they said not to leave the money with the bank as they will use it again for lending and gain Riba.

Hope this answers your question.

wassalam

-brother IbnAdam-

 

[Asja]

as far as i know any form of riba(interest) is haram, but when we deposit in the bank and the bank gives us interest on the saving amount is also riba and that should not be utilised ... but some people take that interest money and give out to needy people and some ask the bankers to give it to whom they deem fit .. like mercy home and institutions like that, my conscious says that if we take the interest generated from the saving then its like accepting the amount even though later we give it to needy people, so i thought the best way to avoide that is ask the bankers to take it from the account and give it to them and let them do what they think best.. that is what my thought is and that is how i handle with my bankers .... hope someone in this forum may shed more light on this matter and suggest if what i said suits my deen ..............

Allah hafiz

Assalamu Allaicomu dear brother.

It is truth that all kind of taking interests or riba is haram in Islam Alhadmulillah,and it is also one of the greatests sins in Islam.
When hellfire was shown to our beloved Prophet Mohammed s.a.w.s.,he saw that people of fire are also the one who were taking riba and interest so it is clearly haram in Islam Alhadmulillah.
We should use our halal alterantive with dealing with Banks and our only halal alternative are Islamic banks Mashallah.
We will asked on which way we deseved our properties and on which way we spend it,so we should be carefull with dealing with interest and riba.

The second reson why we can also not use interest from UnIslamic banks,although we will give interests in charity and to poors is also haram,as UnIslamic banks are useing are money on haram things like alcohol,gambiling etc.

So if we do not have any Islamic back neer us we must ask some other halal alternative which is our OWN SAVING(home saving ).

Inshallah I will try to give more light on this subject.

Islamic banking is based on Sharia(islamic low),not existing of interests ,devision of risk trough banking betwen Bank and its clients,services by Shariah Low,and its influence on Economy,bank like partner in all bussiness actions and importance those princips for Muslims and islam and garating of keeping halal properies.
In Islamic banking the money is not cosider like goods,so like that it can not be offer.Other banks are offering money like principal good and the prise of that good is interest who is paying the cliente of that bank.

Islamic abnks are offering the goods like principal way of satisfaing the necesery of thier cliants trough models which are permisible with Shraih Low.

Those models are based on:

-mudareb(partnership)

-Musharek(common bussiness project)

-marabeh(baying-selling models)

-saem(baying in advance)

-ijara wa iktina(leasing)

-qard al-hasen(kredits without interest


The most of services which Islamic banks are offering is based on partnership betwen Bank and her clients,where bank is sharing the resolt of bussines project and it is sharing risk with her clients.

On of the most importante thing for every Muslim is his property because he will be responable in front of Allah Subane we teal for the way on which he acquire thar property,the way how he spend it and the way how he multiply that property.


In the Holy Quran Allahs subahn we tela sais::"It is forbiden to give or to take interest",and on this statment are based all Islamic banks.
Neither one bank is garanting to you that money which you are keeping on your account will not be used for production of alcohol,for gambling.....etc,but in onother side Islamic bank is garanting you that.

All other which is above mentioned is showing to us that Islamic banking is our halal alternative,which is also giving us oportunity to keep and multiply our property on halal way.


I hope Inshallah I could explain you better dear brother and give more light to this question.
If you have more questions,you can ask me dear brother Inshallah.

May Allah bless you

 

[maryjo]

First of all i'm a sister and not a brother!!!!

I dont think i was i clear enough for u all, the issue here is I KNOW that the interest money is haram, theres no doubt there and i want to withdraw the amount and give it away. Let me make my inquiry more clear:

I gave the example of $10,000, just to make calculations easier. I want to know how much money i should remove. Like i said, do i deduct any amount above the $10,000 i originally deposited, or do i add up the amounts of interest that was given regardless of the current balance.

Like i mentioned previously the bank charges taxes ($1) each month and gives interest (10$) each month. So each month there is a net increase of $9.

SO do i take out $10 or $9 for each month???

 

[IbnAdam77]

First of all i'm a sister and not a brother!!!!

I dont think i was i clear enough for u all, the issue here is I KNOW that the interest money is haram, theres no doubt there and i want to withdraw the amount and give it away. Let me make my inquiry more clear:

I gave the example of $10,000, just to make calculations easier. I want to know how much money i should remove. Like i said, do i deduct any amount above the $10,000 i originally deposited, or do i add up the amounts of interest that was given regardless of the current balance.

Like i mentioned previously the bank charges taxes ($1) each month and gives interest (10$) each month. So each month there is a net increase of $9.

SO do i take out $10 or $9 for each month???

:salam2:

So I understood it correctly I guess. Therefore you have to deduct $10 each month which will make a total of $120 for a straight year. Tax is totally different from this. Therefore paying Tax should be separated from the deduction of Riba money. At the end of the day, there should be $9,988/- in your bank account.

Please read my first post again to make sure this.

Wallahi A'ulam

wassalam

-brother IbnAdam-

 

[maryjo]

:salam2:

At the end of the day, there should be $9,988/- in your bank account.

Wallahi A'ulam

wassalam

-brother IbnAdam-

Thats my point exactly- i put in $10,000, why should i lose money? I understand not gaining but losing....... In the end i dont want any "haram" money and rather be safe than sorry! But i was just wondering.

Thank u all for ur replies!

 

[IbnAdam77]

Thats my point exactly- i put in $10,000, why should i lose money? I understand not gaining but losing....... In the end i dont want any "haram" money and rather be safe than sorry! But i was just wondering.

Thank u all for ur replies!

:salam2:

You lose not because of Riba. The lost $12 is that which is paid as Tax. So that is an expense. Not a lost money because of the elimination of Riba.

wassalam

-brother IbnAdam-