Fatwa Explorer

Fatwa #875828 May 2003South Africa

Is it permissable to offset your transaction fees from a bank with interest earned in the same account?

Answer

Interest monies must be given to the poor and needy who are eligible to accept Zakaat without the intention of reward. However, interest received from government institutes, e.g. post office could be used to offset government taxes. Interest received from private banks cannot be used to offset taxes. It may be used to offset interest charged from the same bank.

and Allah Ta'ala Knows Best

Mufti Ebrahim Desai
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