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Interest-Bearing Accounts

Are interest-bearing accounts permissible?

All interest-bearing bank accounts, however low the interest rate, are impermissible to maintain; in the rare event that there is absolutely no access to an interest-free account, there is a dispensation to maintain an interest-bearing account for the individual who seeks the additional financial security of a bank; this is only permitted on the condition that no other option exists (even if reasonably accessible outside one’s city) and that the interest that one earns is returned to the bank or given to a Muslim or non-Muslim charity or a zakat-eligible recipient (with the intention of eliminating the unlawful wealth rather than with the intention of earning reward) accompanied by a sincere repentance.

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