Is it permissible to pay Zakat or settle debts from bank profits?

It is not permissible to deposit money in an interest-based bank, because the returns from it are unlawful interest (riba), as Allah Almighty says: "O you who have believed, fear Allah and give up what remains [due to you] of interest, if you should be believers. And if you do not, then be informed of a war [against you] from Allah and His Messenger. But if you repent, you may have your principal - [thus] you do no wrong, nor are you wronged."

Money must be withdrawn from interest-based banks. It is not permissible to pay Zakat or settle debts from interest-based returns, because it is unlawful wealth that cannot be owned or benefited from. Rather, anything in excess of the principal amount from interest must be disposed of by giving it to charitable organizations or the poor and needy with the intention of getting rid of it, not with the intention of charity.