Fatwa #1214214 July 2004India
How should I spend the money that comes as interest(not intentionally) from the Bank?
Question
I have a SB account in the Bank, for each period of months, the Bank will put some extra money in the account. first of all i want to confirm that "is this money is halaal or haraam". if it is haraam. this is of what kind?.is this a money of interest or anything else? if this is not halaal. then how should i spent this money. can i give to my parents. can i give to the poors. can i give for the construction of masjid. and plz tell me the best form of spending this money. and also I want ask about zakath. should i include this money or not for calcuting the amount to give zakath. how many percent should i give zakath and to whom shall i give (best ones).? what would be the best times to give zakath ( day or month etc.,)
Answer
You should understand the following regarding your bank account:%0D%0A%0D%0A1. By you placing you money in the bank, you are aiding in Haraam as the bank is using your money to finance interest- bearing loans.%0D%0A2. You are involved in the sin of receiving interest as the money given to you by the bank is interest.%0D%0A%0D%0AThus, a person shouldn't keep money in a bank account unless under dire circumstances. As for the interest that you have received, it will have to be disposed of, by giving it in charity to a poor person. This should not be done with the intention of gaining reward, but rather with the intention of disposing of it.%0D%0A%0D%0AWhen it comes to calculating zakaat, the interest will not be added, but the principle amount in the bank will be .%0D%0A%0D%0ABear in mind the following when calculating zakaat:%0D%0AZakaat is paid on accumulated cash, not on income.You should work out in what month (Islamic, not solar) you had accumulated cash equivalent to the nisab. This month will now be your zakaat month. If for example it was April 2000 which corresponds with Muharram 1421, then Muharram is your Zakaat month. Now you have to work out how much accumulated cash you had in Muharram 1422(April 2001) and work out 2,5 % of that. Do the same for Muharram 1423(March 2002) and this Muharram 1424 (March 2003).%0D%0A%0D%0AYou could find out the nisab, by contacting an alim in your area.%0D%0A%0D%0Aand Allah Ta'ala Knows Best%0D%0A%0D%0AMufti Ebrahim Desai%0D%0AFATWA DEPT.