Depositing and borrowing from banks

Q 3: Is depositing money in banks with or without receiving a profit unlawful? Is borrowing from banks and paying a profit for that loan for the sake of trade or consumption lawful?


A: Depositing money in banks and the like and putting this deposit under request or receiving it at a defined period in the future with a profit in return for depositing it is prohibited. Moreover, depositing money without getting profits in banks that deal in Riba (usury/interest) is also prohibited because, by doing so, you support them in dealing with Riba and help them in expanding their activities in this regard. But if you are forced to deposit your money in Riba-based banks out of fear of losing them or it being stolen, then one is permitted to deposit it in these banks. In this case, one can be permitted to deposit his money in such banks due to this necessity.Lending the bank or borrowing from it is prohibited if it happens in return for a profit whether this was for the need of consumption, development, investment in the fields of trading, manufacturing or agriculture, or the like of other means of production. This is proved by the evidence that points out the prohibition of Riba. But lending the bank without a profit is permitted.


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