What is the Islamic ruling on the interest earned from money that a religious society has deposited in a bank, and how should it be disposed of?
Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 2026
It is impermissible to deposit donation funds in usurious banks except in cases of extreme necessity, such as fear of theft or loss, because doing so is considered aiding the bank in usury. If you are compelled to do so, they must be deposited without interest. If that is not possible, then the interest should be withdrawn and spent on general Muslim welfare, such as orphanages, educational and dawah centers, purchasing land, and building mosques.
Summarized from the full answer at Ftawy · imported
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