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What is the ruling on depositing money in a branch of a bank that declares itself to be Islamic and invests funds according to Sharia (and Allah has permitted trade and forbidden usury), but whose actual commitment cannot be verified?

1 min readAlso available in العربية

There is no objection to placing money in the Islamic transaction branches of interest-based banks, provided that they adhere to the provisions of Islamic law, and their investment channels are separate from the interest-based bank, and they are not used as a cover to attract people's money and exploit their emotions and aversion to usury. However, if these branches do not adhere to the provisions of Islamic law, or are used as a cover to attract the money of Muslims, then it is not permissible to deal with them. If you are in doubt about the dealings of such a branch, you should not place your money in it. You can instead place it in one of the trusted Islamic banks, or invest it in Mudarabah (profit-sharing) and similar forms of permissible investment.

Summarized from the full answer at Ftawy · reviewed Sep 2, 2026

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