The banks here only open savings account

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Date: Thursday , June 16, 2011

Category

Money Matters

Title

 

The banks here only open savings account

Question

We are studying in a university in Malaysia. For students, the banks here only open savings account (no current account or other account which are interest free). In saving account, by the end of each month, we receive some interest money. We give away the money to the poor. Is this okay to open such an account in these conditions and are we doing right thing to give away the money to poor?

 

Some banks here do advertise Islamic Banking but we are unaware that whether these are shariee compliant or not. How would we inquire about these Islamic Banks i.e., what needs to be checked whether the Islamic Banking offered by a conventional bank is shariee compliant or not?

 

Answer

Muhtaram / Muhtaramah

In the Name of Allāh, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāh wa-barakātuh.

 

The Ulama have given permission to make use of conventional banking facilities for safe deposits in a savings or current account as ones intention is not to deliberately earn the interest. Therefore you may make use of the facility and dispose of the interest at the end of the month.

We cannot comment on the Shariah compliancy of the financial institutions in Malaysia as we have not studied their contracts.

 

And Allah knows best
Darul Iftaa

Madrasah Inaa’miyyah

 

 

· The Sharée ruling herein given is specifically based on the question posed and should be read in conjunction with the question.

· The Darul Ifta bears no responsibility to any party who may or may not act on this answer. The Darul Ifta being hereby exempted from loss or damage howsoever caused.

· This answer may not be used as evidence in any Court of Law without prior written consent of the Darul Ifta.