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The question

Is depositing a sum of money in US dollars in a bank for two years, with the same amount received immediately and repaid in installments with a small interest to encourage the deposit, considered permissible (halal) or usury (riba)?

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Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 20261 min readAlso available in العربية
The answer

An agreement to deposit money in a bank with a guaranteed interest is usury (riba), which is forbidden in Islamic law, because it is a loan conditioned on profit, and this is exactly what usury is. Ibn Qudamah said: "Every loan that stipulates an increase is forbidden, without disagreement." Ibn al-Mundhir said: "They (scholars) unanimously agreed that if a lender stipulates an increase or a gift from the borrower, and lends on that condition, then taking that increase is usury." Encouraging people to keep dollars in the bank is not considered a legitimate justification for this usurious transaction.

Summarized from the full answer at Ftawy · imported

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Source platform
Ftawy
Original fatwa ID
164015
Imported
Translation status
Source text, unreviewed
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