Where can a Muslim invest his money in a Halal way given that Islamic banks lend with interest?
A Muslim is required to seek out what is lawful (halal) and avoid what is unlawful (haram). Therefore, it is impermissible to deposit money in interest-based (riba-based) banks because they operate on usury. As for Islamic banks and financial institutions, they strive to reject usury and forbidden transactions, serving as an alternative for Muslims who wish to ensure their dealings are lawful. Therefore, it is advisable to seek out the nearest Islamic bank to deposit money therein. Even if there are some reservations about Islamic banks, some evil is lesser than other evil, and what cannot be attained in its entirety should not be abandoned in its entirety. If Islamic banks are unable to accommodate Muslims' funds and gain their trust by convincing them that their transactions conform to Allah's law, this is a serious failure that must be remedied.
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- Original fatwa ID
- 38409
- Imported
- Translation status
- Source text, unreviewed
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