Putting money in bank seems to be a party in interest transaction.
The contract can be expressed in lay terms as “Here is my money; please keep it with you for me. Do not give me any interest on this money but you can earn as much interest as you can with it”
So, is it right from the Islamic point of view to put money in Bank that deals in interest?
I agree with you on the point. Maintaining current accounts with banks although helps evade involving directly in the interest business, it surely contributes to the working capital of the financial institutions and ultimately helps them flourish. However, we know that the clutching tentacles of the banking system have completely entangled our entire society. Try as we may, we are sometimes compelled to open accounts and enter into transactions with banks. In other words, it has generally become unavoidable to open an account with a bank.
However, in such situations, a person should strictly refrain from taking interest, thereby, avoiding to cross the clear prohibition of the Shari`ah.
It is true that by putting money in a bank a person becomes a contributor to the bank’s interest-earning capacity, yet because, generally, this contribution is made without having a choice to the contrary, therefore, it is hoped that the Almighty will have mercy on us and not hold us responsible for making such a contribution1.
May 4, 2003
- Edited by Moiz Amjad. [↩]