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)?
Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 2026
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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- Original fatwa ID
- 164015
- Imported
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