Is interest money haraam?

Mu' meneen Brothers and Sisters,

As Salaam Aleikum wa Rahmatullahi wa Barakatuh.  (May Allah's Peace, Mercy and Blessings be upon all of you)



One of our brothers/sisters has asked this question:

Dear brother

We do not believe in multiplying our money by depositting it in a bank and letting it gather interest as this is haram.Due to this we havent been able to build any property back home in
india and our savings are also below average.Although we have been living in the gulf from the past 10 years.    My sister-in-law was very much concerned about our bank balance and the future of our children and in a selfless move opened 2 accounts(fixed deposit accounts) in my childrens name.She deposited money from her savings in these accounts a couple of years back and interest has been gathering on it ever since.Just for information sake,this account cannot be operated for another 12 years.By this time the basic money would be converted into a big amount.    I would like to know if we can use this money knowing fully well that this is "interest money".I would like to add here that we have in no way requested my sister-in-law to do this.We were not even aware of it until about 2 months back.Kindly advise us what to do.


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Is interest money haraam?

In the name of Allah, We praise Him, seek His help and ask for His forgiveness. Whoever Allah guides none can misguide, and whoever He allows to fall astray, none can guide them aright. We bear witness that there is no one (no idol,  no person,  no grave, no prophet,  no imam,  no dai,  nobody!) worthy of worship but Allah Alone, and we bear witness that Muhammad (saws) is His slave-servant and the seal of His Messengers.


Allah and His Messenger (saws) have indeed declared the receiving and paying of ‘ribaHaraam in very strong terms, and it is the prescribed duty of every believer, who sincerely believes in Allah and the Last Day, to abstain from ‘riba’.


Allah says further in the Holy Quran Chapter 2 Surah Baqarah verse 278:O Believers!,  fear Allah and give up that ‘riba’ which is still due to you,  if you are true believers.   But if you do not do so, then you are warned of the declaration of war against you by Allah and His Messenger!


Allah says in the Holy Quran Chapter 4 Surah Nisa verse 161:That they took ‘riba’, although they were forbidden.  And that they devoured men’s substance wrongfully.   We have prepared for those among them who reject faith a grievous punishment (of Hell Fire)!


If you live in the Gulf region, there are many prominent Islamic banking institution which can accommodate building your savings in a format approved by the Shariah.   Whatever the reason you have not been able to build your savings, my beloved brother, it is wiser and better that you stay away from the concept of ‘riba’, and fear Allah Subhanah.   One should strive to save himself and his family from consuming any of the things which Allah and His Messenger (saws) have declared haraam.


Allah says in the Holy Quran Chapter 66 Surah Tahreem verse 6:O you who have believed, save yourselves and your families from a Fire whose fuel shall be men and stones; over which shall be appointed fierce and stern angels, who never disobey Allah’s Command, and they only do as they are commanded!


Regarding the ‘interest-bearing’ savings account, your sister-in-law has established in the name of the children; brother, it would be purer for you and your children to abstain from the interest earned in this account.  You can obviously use the principal amount which has accumulated in this account; but the interest that has accumulated is forbidden, and under no circumstances should one consume anything of the haraam.  


If you fear Allah, and abstain from what Allah and His Messenger (saws) have declared haraam; Allah Subhanah will, if He Pleases, enrich you from His Infinite Bounty!    This worldly life is a passing phase, and a short period of life where one is created for a test by the All Wise, All Merciful Lord.  One should use his wisdom and not spoil his Hereafter to make a paltry gain in the present life.  


In the sight of Shariah, the interest earned on the money deposited by your sister-in-law is forbidden for you; no matter whether she did this on your advice or on her own.  If you are personally convinced and have knowledge that this money is the interest accumulated, it is forbidden.  Thus, it would be purer for you and your family to abstain from the interest funds in any form or manner.


May Allah give you the patience and steadfastness to strive in earning and feeding yourself and your family only with the permissible and halaal.  It is expected that Allah Subhanah will be pleased with your sacrifice, and will honor you for your intentions in the life Hereafter.   No good deed done by a believer will go in waste in the Just Court of our Merciful Lord!


Whatever written of Truth and benefit is only due to Allah’s Assistance and Guidance, and whatever of error is of me.  Allah Alone Knows Best and He is the Only Source of Strength.


Your Brother in Islam,








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