Is it permissible to withdraw money from an Islamic bank that guarantees the principal and converts its profit into usurious interest, and deposit it into a conventional bank that opens a special account without interest?
Bank deposits are divided into two categories: demand deposits (current accounts), which are considered a loan, making it unlawful to take interest on them. The money must be withdrawn, and the interest disposed of if the bank provides it. The second category is time deposits (investment deposits). If these are entrusted to a bank that adheres to law through a contract, they are not guaranteed except in cases of transgression or negligence. However, if they are guaranteed, then they are usurious loans. It is not permissible to deposit money in banks that deal with usury, whether with or without interest, except out of necessity in a current account without interest, while choosing the bank that deals the least with usury.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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- 81912
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- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy