Interest and Gambling

Depositing trust money into interest bearing accounts

Q: I am asking a question on behalf of a trust who runs musjids and madressas, schools and clinics. We had a executive committee meeting in which couple of members said to deposit excess money which we have in an interest bearing account and use that money for Roads, Toilets, Walls, etc. There was disagreement, most members disagreed and but was agreed to ask Mufti to address the question.

How to dispose of interest

Q: I have an amount in a savings account and I am getting interest for it. Is it Haraam? I never used it but whenever I receive interest, I used to give
it to poor people what ever I received. Is it accepted in Islam? Will there be any benefit? Is it haraam for the poor people whoever receives interest amount from us?

Interest Transactions

Q: Are any of the following Interest Transactions?

  1. If a person says "Buy this item for me when you go to the supermarket, it costs R40,but I will give you R50 tomorrow?
  2. Loan me R40, I will give you R50 tomorrow, the extra R10 is a gift?
  3. A person gives me R50 and says "Go buy this item for me, it costs R40 and you can keep the change?
  4. If the person insists on giving the extra amount even when I tell him that it is Interest, what should I do with that money?

Deriving benefit from the bank

Q: A person chooses to deposit his additional cash in the bank for safe keeping due to safety concerns. He has no intention of loaning these funds to the bank. Will these funds still be treated as a loan to the bank if he has no intention of loaning it to the bank at the time of depositing?

Income earned through leasing one's property to the bank

Q: Can you explain to me the reason why Ulamaa so severely condemn the earnings of banks? In today’s times, the majority of the wealth in banks is acquired through the deposits of people which are from halaal. Hence, if one leases out his property to a bank, the income should be halaal based on the principle that if 50% or more of one’s income is halaal and such a person has to give you a gift, you can accept it.