Depositing in Islamic banks when available

Fatawa Question

Assalamu Alaikum, dear scholars, my first question is regarding interest that one accumulates on their savings account... My Father has a savings account in Pakistan, on which he accumulates interest... The reason he has an account there is so that he can provide directly for his family there who are in constant need of money to fulfill their basic needs. If my father did not have an account there, then every time a family member would need money, my father would have to have it wired over which is time consuming and quite costly... It just isn’t feasible, especially if the family member needs it right away. As a response to a question posed by another fellow Muslim on this website, the advice given regarding bank interest was that the interest money earned should be regularly taken out and given to charity. In our case, all of the money in the account is going towards charity since certain members of my family are quite poor and the money my father puts into the account helps them meet their basic needs. In light of the information mentioned above, is what my father doing Halal or Haram ?

Fatwa

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Publication Date

2003-01-13

Main Subjects

Economics & Business Administration
Financial and Accounting Sciences
Religion
Islamic Studies

Topics

• Islamic jurisprudence
• Islamic economics
• Pakistan
• Bank deposits
• Usury
• Savings accounts
• Bank accounts
• Islamic Banks
• Charities

Data Type

Fatawa

Language

English

Record ID

BIM-724621

• APA
• MLA
• AMA