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Is it permissible to use Interest on saving


Salaam alaykum,

My question is Are Shia allowed to take interest on savings they have and use that interest for their daily expenses?


Wa Alaykumussalam

Thank you for your question

You haven’t mentioned your Mujtahid’s name but it is allowed IF not stipulated, according to the Shariah laws with some other conditions. I will mention the below rulings about interest according to Ayatullah al-Udhma Sayyid Ali Sistany:

Question: Is it permissible to take interest from unbelievers, especially for those who live in a non-Muslim country?

Answer: It is permissible to receive interest from non-Muslims and their banks.

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 of them).

Question: Is it permitted to pay interest to non-Muslims and also take interest from them?

Answer: Giving interest to a non-Muslim in a deal that is based on interest is impermissible and receiving it (interest) is permissible and there is no objection in it.

Investing in the bank share/stock market according to Ayatullah al-Udhma Sayyid Ali Sistany:

It is permissible if bank doesn’t have interest/usury(rabawi) transactions. But if you know the transactions are usury(rabawi), then, in this case, the share will be allowed if you inform the bank that you do not agree with the rabawi transaction, even if the bank doesn’t accept or act according to you. This way you will be released from the sin of getting involved in usury(rabawi) transactions.

Therefore, the contract has to be based on Islamic Shariah. According to the rulings mentioned above, you shouldn’t stipulate the condition on the bank to receive the profit. According to Ayatullah Sistani, if the banks are governmental then you must pay half of the interest to the needy(faqeer). But if the banks are private and pay the interest, one can use it.

May Allah(swt) grant you success

Allah knows the best


Syed Haider