Is the presence of money in a bank account that yields interest – even if this interest is then spent on what benefits Muslims – considered unlawful (haram) or dubious (having an element of doubt)?

If a Muslim wishes to open a bank account to save money or transfer their salary, it is obligatory for them to do so at an Islamic bank. It is not permissible for them to deposit money in a usurious bank if an Islamic alternative is available.

However, if they are compelled to open an account at a usurious bank—for example, due to the absence of an Islamic bank or if their employer mandates a specific bank—it is permissible, provided that it is a current account that does not accrue usurious interest.

Donating usurious interest does not absolve a Muslim of the sin of usury. Rather, it is obligatory for them to abstain from usury and convert the account from a usurious one to a current account. This is because usury is forbidden, and it is not permissible to enter into forbidden contracts with the intention of donating the proceeds. Unlawful gain is impure and unacceptable to Allah, and the one who engages in it is sinful.

Jabir (may Allah be pleased with him) narrated: "The Messenger of Allah (peace be upon him) cursed the devourer of usury, its payer, its scribe, and its two witnesses." He then said: "(All of them are equally sinful)."

As for usurious interest that was received before knowledge of its prohibition or before realizing that the bank yielded interest, it is permissible to benefit from it, based on the words of Allah the Almighty: (So whoever receives an admonition from his Lord and desists, he may retain what has passed, and his affair is [now] with Allah). What was received out of ignorance or misinterpretation is allowed to be retained. However, for future dealings, it is obligatory to cease such practices and convert the account to a current account.