Is it permissible to participate in a competition whose prizes are offered by a usurious bank?
The scenarios for competitions can be summarized as follows:
1. First Scenario: If the participant deposits their account in a bank and the questions are not related to Islamic sciences, this is unlawful from several perspectives: depositing money in an interest-based bank, receiving compensation for an impermissible competition, gambling (as the bank benefits from attracting customers), usury (because opening the account brings a benefit), and usually, the prizes are from prohibited interest-based earnings.
2. Second Scenario: If the participant does not deposit their account in a bank, this is unlawful because it involves receiving compensation for an impermissible competition, and accepting money of which most is unlawful.
3. Third Scenario: If the participant does not deposit their account in a bank and the competition is in Islamic sciences, this is generally unlawful because the prizes are from interest-based earnings. However, if it is known that the prizes are not from unlawful money, then there is no objection, with a preference for the permissibility of receiving compensation for competitions in Islamic sciences, which is the view of the Hanafis and those who agree with them.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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