Short answer
According to most scholars, you keep your capital and get rid of the interest: you do not use it for yourself or your family, you do not leave it with the bank, and you give it to the poor or to works of public benefit, without expecting any reward (Diyanet; Ibn Baz, fatwa 18528).
What the institutions say
Official positions, with their reference. The badge sums up the institution’s position, not an opinion of Assabile.
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Diyanet Presidency of Religious Affairs, Türkiye (High Council of Religious Affairs)Under conditions
Interest received may not be used for oneself or for one’s dependants; it is given to those in need, without expecting any reward. Unlawful income must not be used for mosques.
Fatwa of 15/09/2020 (fixed-term deposits); decision on unlawful income (2024)
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Permanent Committee Council of Senior Scholars and Permanent Committee for Research and Fatwa, Saudi ArabiaUnder conditions
Interest is not returned to the bank and is not consumed: it is spent on good works, such as charity to the poor or facilities that benefit the public.
Ibn Baz, fatwa 18528 (on how to get rid of interest)
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Dar al-Ifta of Egypt House of Fatwa, CairoPermitted
Since it regards these returns as lawful, Dar al-Ifta does not ask people to get rid of them. A minority view.
Fatwas of Dar al-Ifta in line with al-Azhar’s decision (2002)
Positions are reported as they stand; other scholars may hold other views. Method and disclaimers
Depending on your country
- France
- The interest on the Livret A, LDDS, LEP and PEL (regulated savings accounts and home savings plan) appears on the bank’s annual statement. An association officially recognised as being of public benefit, or a charity helping the poor, can receive it.
- Türkiye
- Diyanet gives this rule for interest on fixed-term accounts; as for the “promotions” that banks pay on salary accounts, which are not quite interest but not free of doubt either, it considers it better for anyone whose needs are met to give them to the poor (fatwa of 18/08/2017).
- United Kingdom
- Interest on savings accounts, including a conventional ISA (tax-free Individual Savings Account), is purified in the same way; an Islamic savings account avoids receiving any.
The principle: keep the capital, give up the surplus
The Qur’an leaves the one who gives up riba his capital (al-Baqarah 2:279). Interest therefore does not belong to the person who received it; since its rightful owner cannot be identified, it goes to the poor or to the public good. It is not charity that earns a reward: the Prophet ﷺ said that Allah is good and accepts only what is good (Muslim 1015). It is given away in order to be rid of it.
Withdraw it or leave it with the bank?
Most contemporary scholars ask people to withdraw it rather than leave it with the bank, which would use it in other interest-based transactions. Ibn Baz says explicitly not to return it to the bank and not to consume it, but to spend it on good works (fatwa 18528). A minority view advises never touching it; it has few followers.
Who should receive it?
- The poor and needy, or works of public benefit (facilities, roads, sanitation, social assistance).
- Not yourself or your family: neither everyday expenses nor personal debts (Diyanet).
- Mosques: Diyanet rules out using unlawful income for them; other scholars have accepted it. It is better to avoid it so as to stay clear of the disagreement.
- Taxes: some contemporary scholars allow interest to be used to pay an unjust tax, others do not; this is a point to put to a scholar you trust.
How much?
Add up the interest shown on your statements: that is the amount to give away. The interest purification tool works out the total and keeps a record of what you have already given, year by year.
The verses
فَإِن لَّمْ تَفْعَلُوا۟ فَأْذَنُوا۟ بِحَرْبٍ مِّنَ ٱللَّهِ وَرَسُولِهِۦ وَإِن تُبْتُمْ فَلَكُمْ رُءُوسُ أَمْوَٰلِكُمْ لَا تَظْلِمُونَ وَلَا تُظْلَمُونَ ٢٧٩
And if you do not, then be informed of a war [against you] from Allāh and His Messenger. But if you repent, you may have your principal - [thus] you do no wrong, nor are you wronged.
The hadiths
O people, indeed, Allah is good and does not accept except what is good. Indeed, Allah has commanded the believers with what he commanded the messengers
"O people, indeed, Allah is good and does not accept except what is good. Indeed, Allah has commanded the believers with what he commanded the messengers. He says: {O messengers, eat from the lawful things and act righteously, for I am All-Knowing of what you do.} [Surat al-Mu’minūn: 51] And He…
أَيُّهَا النَّاسُ إِنَّ اللَّهَ طَيِّبٌ لاَ يَقْبَلُ إِلاَّ طَيِّبًا وَإِنَّ اللَّهَ أَمَرَ الْمُؤْمِنِينَ بِمَا أَمَرَ بِهِ الْمُرْسَلِينَ فَقَالَ { يَا أَيُّهَا الرُّسُلُ كُلُوا مِنَ الطَّيِّبَاتِ وَاعْمَلُوا…
Frequently asked questions
I used interest without knowing it was forbidden: what should I do?
Ibn Baz considers that what was taken out of ignorance, before one knew the rule, is forgiven; from the moment one knows, one gets rid of the interest. For a specific case, ask a scholar.
Can I give the interest to a relative in need?
Yes, if they are among the poor and are not one of your dependants: you must not benefit from it yourself.