Fatwa No : 80976
Depositing money into a bank current account under compulsion

Depositing money into a bank current account under compulsion

Respected, Assalamu Alaikum!
I would be grateful if you could guide me on the following issue: Dealing with interest (riba) through banks is not permissible, which is why we keep our funds in a current account in the bank. This gives us mental peace that we are not involved in any interest-based transactions.
Recently, a friend advised me that although you do not personally take interest on the money you deposit in the bank, the benefit of it goes entirely to the bank. According to this friend, it is not appropriate to provide any benefit to the bank in this way. He suggests that the interest money received from the bank should be taken and spent on helping deserving individuals or organizations, which would benefit many needy people. By spending this money on others instead of yourself, you would not be committing a sin. Even if you do not receive any reward for this good deed, at least you would fulfill someone’s need and earn their prayers.
Please kindly guide me on this matter, Can I take the interest earned from the bank and spend it on helping the needy? Also, please clarify on what purposes this money can be spent and on what purposes it cannot. Furthermore, can this money be used to help those who are not eligible for zakat but are in need due to circumstances?
Please provide guidance according to Islamic teachings.

الجوابُ حامِدا ًو مُصلیِّا ً

It is legally permissible and correct in Shariah for the questioner to deposit money in a bank current account out of genuine necessity to avoid interest. One should avoid becoming worried unnecessarily just because of the mentioned friend's opinions. Furthermore, it is not necessary to give haram (forbidden) money to the needy; rather, clean and halal money can undoubtedly be given instead.