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Is interest collected from a bank/savings account considered riba?


Alsalam 3alaykum


I have been trying to find a valid and credible resource that follows the teachings of Ahlul Bayt to better my understanding of the subject “riba”.

There is an app called digit. This application is a “rainy day/emergency fund” savings account app. It automatically withdrawals a certain amount of money depending on your income and spending habits and deposits the money into the savings account.

However, after 90 days, the app credits you with 1% interest of how much you have saved in the account.

Is collecting this interest from the bank account forbidden by the teachings of Quran and Ahlul Bayt? I have seen there is quite a bit of controversy on the meaning of “riba” amongst Muslims and scholars alike, and I am not qualified to come to a conclusion on my own, but will gladly follow the teachings and advice of Ahlul Bayt on this matter.

I believe this app is a good idea, but if it is considered riba I will stop using it and withdraw my funds (it has not been 90 days so I have not accumulated any interest).

Thank you,



Wa Alaykumussalam

Thank you for your question

There are two types Riba which are haram:

  1. Riba in loan – you give a loan to someone but stipulate and put a condition that he pays you more than what you have given him in loan.
  2. Riba in trading

In your case, either it is the bank’s application which keeps a small amount of money and then later gives you the interest or a third party application. It seems fine if you do not stipulate the condition of interest.

Rulings regarding interest according to Ayatullah al-Udhma Sayyid Ali Sistany:

Question: If I know that the bank will give me interest even without stipulating the conditions, is it permissible for me to deposit in a savings account that takes the form of a term-deposit?

Answer: Yes, it is permissible, as long as you do not stipulate the conditions of interest.

Question: Is it permissible to deposit or borrow money from Muslim banks whereby the interest is either received or paid out?

Answer: It is permissible to deposit money in a bank without prior condition for interest and it is as well permissible to take interest, if the bank in which money is deposited belongs to Muslims. If it belongs to government, it is permissible to take interest provided that half of the interest is given away to poor people (Momineen).

To read rules regarding Khums:

May Allah(swt) grant you success


Syed Haider