Can Riba (Interest) Be Taken to Donate to Charity?

Walekumussalam,

The intention of saying, "I will not use the interest (riba) for myself; instead, I will give all of it to the poor," may appear noble. However, a good intention does not make a prohibited act permissible. Therefore, it is not permissible to intentionally open an interest-bearing savings account or deposit money in it with the purpose of earning interest, even if one intends from the outset to donate every penny of that interest without expecting any reward.

The reason is that Islam has not only prohibited consuming riba but has also prohibited engaging in riba-based transactions.

Allah, the Exalted, says:

«﴿وَأَحَلَّ اللَّهُ الْبَيْعَ وَحَرَّمَ الرِّبَا﴾

“Allah has permitted trade and forbidden riba (interest).”

(Surah al-Baqarah 2:275)»

He also says:

«﴿يَا أَيُّهَا الَّذِينَ آمَنُوا اتَّقُوا اللَّهَ وَذَرُوا مَا بَقِيَ مِنَ الرِّبَا﴾

“O you who believe! Fear Allah and give up whatever remains of riba.”

(Surah al-Baqarah 2:278)»

The Messenger of Allah ﷺ said:

«"لَعَنَ رَسُولُ اللَّهِ ﷺ آكِلَ الرِّبَا، وَمُوكِلَهُ، وَكَاتِبَهُ، وَشَاهِدَيْهِ، وَقَالَ: هُمْ سَوَاءٌ."»

«"The Messenger of Allah ﷺ cursed the one who consumes riba, the one who pays it, the one who records it, and its two witnesses, and he said: 'They are all equal (in sin).'"»

(Sahih Muslim, Hadith: 1598)

Therefore, deliberately earning interest falls under the warning mentioned in this hadith, even if the person does not keep any of it for personal use afterward.

However, if interest is credited to a person's account without their intention or choice, they must not use it for their own benefit. Instead, they should dispose of it by giving it to the poor or spending it on public welfare without intending to earn any reward, as this is not considered charity but rather a means of ridding oneself of unlawful wealth.

References:

- The Noble Qur'an: Surah al-Baqarah 2:275, 2:278–279

- Sahih Muslim, Hadith: 1598

- Radd al-Muhtar, Kitab al-Buyu', Bab al-Riba

- Al-Fatawa al-Hindiyyah, Kitab al-Buyu', Bab al-Riba

- Fatawa Usmani, Vol. 3, Kitab al-Buyu', Masa'il al-Riba