What Do I Do with Interest Accrued on My Savings Account Opened by My Father?
Answered by Shaykh Muhammad Carr
Question
I recently learned that interest (riba) is haram. In 2012, my father opened a savings account for me, which has accumulated 60,000 interest. Should I donate this amount without expecting any reward? Also, can I do so secretly if my father refuses to accept it?
ِAnswer
In the Name of Allah, the Most Merciful and Compassionate.
I pray you are in good faith and health. May Allah reward you for ensuring your sustenance (rizq) is permissible.
Giving and receiving interest is decisively impermissible in Islam. Allah says, “O believers! Fear Allah, and give up outstanding interest if you are (true) believers. If you do not, then beware of a war with Allah and His Messenger! But if you repent, you may retain your principal—neither inflicting nor suffering harm.” [Quran, 2:278-279]
You should donate this amount without expecting any reward, as you are doing so on behalf of the rightful owners of the wealth, which was misappropriated through interest. You must do this even if your father objects, as there is no obedience to Allah’s creation when it involves violating Allah’s law.
Use the greatest wisdom when advising your father to do good and avoid wrongdoing. In this context, wisdom is defined as ‘correcting the wrong while preserving the relationship.’ If wisdom dictates that you should do this without informing him at this stage, then that is what you should do.
Pray for your father, and when the opportunity arises, gently explain to him the laws of Allah regarding riba.
Interest on Savings Accounts
When you deposit money in the bank, the interest earned is not your property, Islamically. This is considered unlawful money.
General Rule of Unlawful Funds
The general rule that applies to disposing of unlawful funds is as follows:
1. Where the rightful owner is known, it must be returned to the rightful owner.
2. Where the rightful owner is not known [or if they refuse], the funds must be disposed of in one of two ways:
a) it must either be given towards a charitable cause that benefits the public at large, such as public hospitals, schools, or mosques;
b) or it should be given in charity to a person who is entitled by his need to receive charity. [Nawawi, Majmu‘ Sharh al-Muhadhdhab; Karan, Disposal of Riba (Fatwa issued by the MJC)]
For further reading and greater clarity, please visit the following answers:
- What Can I Do with the Unlawful Money I Earned from Something I Repented Long Ago?
- How Do I Get Rid Of Haram Money?
And with Allah alone is our success.
[Shaykh] Muhammad Carr
Checked and Approved by Shaykh Muhammad Abu Bakr Badhib
Shaykh Muhammad Carr has dedicated his life to studying and transmitting our beautiful deen. His studies have taken him around the globe, where he has benefitted from many luminaries. Under the guidance of his teachers – Shaykh Taha Karan, Shaykh Yaseen Abbas, Shaykh Muadh Ali, and many others – Shaykh Muhammad has grown to appreciate the beauty and benefits of diverse scholarship. He completed his memorization of the Qur’an at Dar al-Ulum Zakariyyah in September 1997 and received an Alimiyya Degree in 2006 from DUAI (Darul Ulum al-Arabiyyah al-Islamiyyah). He is also affiliated with Masjid Auwal in Bo Kaap, Cape Town (the oldest mosque in South Africa), where he serves as a co-imam, and Dar Al-Safa, where he has taught since 2018. As a teacher, he imparts the wisdom of our heritage and tradition by opening the door for students. As an imam, he has the unique opportunity to serve his community in daily life.
In addition to his roles as a teacher and imam, Shaykh Muhammad Carr has contributed significantly to the administrative and advisory aspects of Islamic institutions. Since 2023, he has served as the Administrative Director at The Imam Kurani Institute, contributing to the institution’s growth and development. He continues to pursue traditional Islamic Sciences, possessing a keen interest in Islamic Contract Law and Finance. Shaykh Muhammad has been a Shari’ah Board Member for Islamic Asset Management & Insurance Companies since 2001, aligning financial practices with Islamic principles.
