I’ve been debating over this issue over the past years. I initially had one non-interest checking account and one savings account. The interest that accumulated in my savings account, I then gave away to Islamic charities. After a while I didn’t feel right about the interest and thought that I was basically giving away “haram” money to the charities, so I cancelled my savings account and opened another non-interest checking one that just holds my savings.
It is getting a little confusing for me to handle 2 diff checking accounts, plus I dont know how safe it is to put my savings into a checking account, so I am debating whether I should go back to the savings account and just give away the interest. However, I still don’t feel right about that. Does anyone know if giving away interest money is still considered haram? And any other suggestions as to what ppl do in this regard? Thanks
^ sometimes sarcasm doesn't really solve the problem
kurianjani: I have had the same problem. What could be the risk of having two different checking accounts? Find a bank that has low monthly fee for checking accounts and open an account there .. treat is as a savings account.
you can always donate your ‘earned interest’ to a charity but cannot use it as your “zakat” or “sadaqa”, you don’t earn any sawab by donating ‘earned interest’. its always better to open a non-interest bearing account.
Yeah that is what I have been doing....treating one checking as a savings account, and i am not having any issues with that. By the safe issue, I meant I don't really want a large sum of money into my checkings account.....but that isn't really a main concern. I am probably going to keep my accounts the way they are now with 2 checking, but I was just curious to know if it is haram to give away interest money?
^ the scholars who restrict taking out (even for donating it) any interest from account tell you that you NEVER take it out and keep track of your original money, and if for one reason you close account you leave it for the bank to keep, I don't know how "US" banks will handle that though.
I used to be of the opinion that interest that one accumulates on his/her account should be withdrawn and then given away in charity. However, an acquaintance clarified and provided evidence that such money should not be dealt with in any manner.
He gave me an example of how he spoke to his bank and his account was changed to that where he wouldn't be accumulating any interest at all. I spoke to the financial institutions that I'm with and I no longer receive any interest.
I suppose if you wish to be really cautious and not deal with it at all, then try speaking to your bank.
Actually i did the same thing. I got rid of my savings account.
And currently i am looking for other sharia compliant investment options. I found out UM financial does have some sharia compliant products (www.umfinancial.com) e.g. RRSP and mortgages, however, i am not sure about them. For one they are announcing a draw of $10000 and any draw/lottery is suppose to be haram by to begin with. I am also not too sure about their products, investments and Fatwas. So i would also be looking for any advice regarding halal/sharia compliant financial products.
He gave me an example of how he spoke to his bank and his account was changed to that where he wouldn't be accumulating any interest at all. I spoke to the financial institutions that I'm with and I no longer receive any interest.
I suppose if you wish to be really cautious and not deal with it at all, then try speaking to your bank.
I guess I will try again. Last time I asked them for non-interest, they looked at me like I was crazy, and said no such savings account exists. but at least they have non-interest checkings, so i will just stick with that
And if you spend out of it in charity, not only will you garner Allah :swt:'s great mercy in the hereafter but you will be amazed at the Barakah you will receive in your earnings InshAllah…