What is the ruling on withdrawing usurious interest from a bank savings account and giving it to a needy person, and is that considered a sin for both the giver and the recipient? And what is the correct way to dispose of this interest?

It is not permissible to open an account in interest-based banks except out of necessity or extreme need. One must limit it to a current account and not an savings account. It is forbidden to deal with them if there is an alternative Islamic bank. As for savings accounts in Islamic banks that are committed to permissible investment, earning profits from them is permissible. If usurious interest is received from an interest-based bank, it is obligatory to dispose of it by spending it on Muslim welfare or giving it to the poor and needy. It should not be returned to the bank because it is illicit money whose owners are unknown, and it is lawful for the poor person who benefits from it.