Asak Mufti Saab,
Currently i have a checking account with over $50K in it, i get minimum interest 0.1% in this account and i donate that money to poor in india. I dont have any option but to have checking account.
As you know there is so much poverty in Indian Muslims i was thinking if i can keep this $50K in Savings or CD Accounts and get Interest of 3% and donate completely to poor...this way i can donate more instead of leaving money for Banks.
Please let me know if i can do this ? or any other approach permissible in Shariah.
بسم اللہ الرحمن الرحیم
الجواب وباللہ التوفیق
It is permissible to donate bank interest money to the poor and needy, but it is not permissible to shop for another bank to seek higher interest rates.
It should be noted that taking usury money is strictly haraam and not permissible according to sharee’ah and taking one dirham from it is equivalent to adultery with one's own mother and is the cause of great misfortune in this world and in the hereafter. Therefore, it is obligatory to avoid it as firmly as possible.
The permission to take interest money from the bank is only under compulsion, so that they do not use it against the Muslims in any way. Since this money is evil and property of the other, therefore after taking it from the bank, it is necessary to give it to charity without intention of reward.
It is not permissible to deposit money in an institution to seek higher interest rates out of sympathy for the people so that more of such money may be given to poor.
لأن سبیل الکسب الخبیث التصدق اذاتعذر الرد علی صاحبہ۔(رد المحتار علی الدر المختار، کتاب الحظر والا باحۃ فصل فی البیع :۹ ؍۴۷۰)
وعن النبی صلی اللہ علیہ وسلم قال :لا یقبل اللہ عزوجل صدقۃ من غلول (ابوداؤد ،باب الطہارۃ: ۱؍۹)
فقط واللہ اعلم بالصواب