Interest money

Road Accident Fund

Q: The road accident fund agrees to pay a person involved in a motor vehicle accident R100 000 for general damages. This agreement is taken to the high court so it can be made into a court order. The court order is made on 1 january 2017 that the road accident fund will pay the person R100 000. The court order further states: "In the event of the aforesaid amount not being paid timeously, the defendant shall be liable for interest on the amount at the rate of 10.25% per annum, calculated from the 15th calendar day after the date of this order to date of payment." The road accident fund pays the amount after 6 months of the court order and therefore interest is also received on top of the R100 000.

The question is: Is this extra amount received interest according to the shariah?

Using interest to offset bank charges and disposing of interest money

Q: I have both a current account as well as a savings account at the same bank. On both the accounts, the bank levies bank charges, but the savings account is interest-bearing.

In this situation, can the interest received on the savings account be used to pay the charges levied on both accounts by the bank?

If not, then to whom should the interest be given? Can it be given to non-Muslims and even to street beggars or beggars knocking on doors every week?

Using interest money to pay tax

Q: As per new Saudi rules, they are charging many levy, taxes, even charges of exit/entry and iqama charges. My father have 7 dependents under him which and we are paying government more than 40,000 riyal from our halal earned money. In this case, is it possible to pay them by depositing our money in fixed deposits and give them interest amount and get rid of it?