Question Summary:
Where to dispose bank interest?

Question Detail:

A have some money in my account, it is about 6000 and has earned interest, my aim is that at the end when I take my money out I will return the interest back to the bank or I will send this money to the poor people as Sadaqah, is it possible or not to do such?

Answer :

In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
The use of a conventional bank is based on necessity. One may use the facilities of a conventional bank only to the extent of the need. If there is an interest free banking facility, then is not permissible to use an interest banking account. In the instance where such an account is not available, then he should choose the account which accumulates the least percentage of interest.
(Fatawa Mahmoodiyah- vol 16 - pg 381 – darul ifta jami῾ah faruqiya)
 
If a Muslim has deposited his money in a interest bearing account, or the interest has come to his account without his choice or intention, he should return the money to the source (provided that the source is someone other than an institute such as the bank and provided that the source can be traced). If however, the source cannot be traced or the source of the Riba is some institute such as the bank, then the Riba should be given away to the poor without any intention of Thawaab.
 
According to the Fuqaha (Jurists of Islam), interest is “Waajib-ut-tasadduq” meaning that it is necessary to dispose of it by giving it away in charity, to the poor (ideally to poor Muslims) without making any intention of reward when disposing of it. Therefore the only safe route is to hand over this interest amount to the poor without an intention of reward.
 
وَيَرُدُّونَهَا عَلَى أَرْبَابِهَا إنْ عَرَفُوهُمْ ، وَإِلَّا تَصَدَّقُوا بِهَا لِأَنَّ سَبِيلَ الْكَسْبِ الْخَبِيثِ التَّصَدُّقُ إذَا تَعَذَّرَ الرَّدُّ عَلَى صَاحِبِهِ                
رد المحتار- ج 6 – ص 385  - ايج ايم سعيد 
قال شيخنا ويستفاد من كتب فقهائنا كالهداية وغيرها ان من ملك بملك خبيث ولم يمكنه الرد الي المالك فسبيله التصدق علي الفقراء .... قال والظاهر ان المتصدق بمثله ينبغي ان ينوي به فراغ الذمة ولا يرجوا به المثوبة  
معارف السنن -  ج 2 - ص95  - ايج ايم سعيد
 
احسن الفتاوى – ج 7 – ص 16 - ايج ايم سعيد
كفايت المفتى – ج 8 – ص 72 – دار الاشاعت
فتاوى محمودية – ج 16 – ص 381 – دار الافتاء جامعه فاروقية
 
And Allah Ta’āla Knows Best
Mufti Hussein Issa,
Student of Darul Iftaa
Mozambique
 
Checked and Approved by,
Mufti Ebrahim Desai.
www.daruliftaa.net