interest

[allan]

.hmmm...

 

ive opened a new account with a bank, that diposits 5.25% intereset anually on my capital, can someone tell me is this form of interst is haram?...are there any rulings on such matters?...

[Nur]

Its Ribaa, (Usury), its Haram to take it as it represented the violation of taking unlawful wealth from people ( Akl Amwaala annaas bil baatil)

 

In Islam, wealth belongs to Allah alone, we are care takers of it while alive, and it goes to our heirs when we die, it must be earned according to fair Islamic practice, by labour, trading, gift or inheritance. Games of chance and Ribaa are two forms of Haraam transfer of wealth, Ribaa is made Haraam because one party has no risk at all while the other party assumes all the risk, an unfair dealing in islam.

 

Nur

[N.O.R.F]

Akhi Nur

 

What is the ruling on giving the interest earned away in a charity box. Many mosques have a box for unwanted interest. I know one should not 'intend' on giving it as sadaqa and therefore should not hope/expect to be rewarded for it.

 

But was is the permissibility of it? (putting it in abox that may be used as money for the poor/bills etc

[Socod_badne]

You know, Banks use your deposits to make money via lending. Those who were lended to use the money to finance business which create jobs, hence create more money... the bottomline is, your deposit is used to create more money for more people. Why shouldn't you get your share of the pie?

 

 

As said, all interest is Haraam in Islam including the one you alluded to.

[Nur]

Northerner

 

Riba money earned from an interest bearing account is a form of wealth that is transferred to your possession unfairly, as the Banks share with you wealth that they have taken in an unfair dealing from distressed borrowers who accepted unfair terms of exposing themselves to all the risk while the Bank (and you) are covered with collaterals such as property or insurance (another haram dealing).

 

Thus, this money is tantamount to a stolen money in the Sharia. What should be done with stolen money? it has to go back to its rightful owners, which is close to impossible to track as your share of interest is from the pool of the large haram pot the Bank earned from all loans it gave away.

 

Sharia has it that you are not allowed to use this money, you cant leave it with the bank, you cant just take it and throw it away, so, giving it to charity is the best form of disposal of this wealth. Are you rewarded for it? well from the perspective of goodwill, not from the perspective of sharing your wealth with the poor ( sadaqah), as the latter requires ownership of the wealth that you give away for charity.

 

 

Nur