How to dispose of bank interest

Question

Question: People keep the savings from their income in a bank or a post office. Is the surplus amount (which is called interest) that is paid on this deposited sum permissible according to the noble Sharia or not? If not, should it be left, or should it be taken and given away as sadaqa? Kindly give an answer with proof.

Answer

According to those respected scholars in whose view taking interest from a harbi (a non-Muslim subject of dar al-harb) in dar al-harb is permissible, using this surplus amount oneself is also permissible; and according to those in whose view it is not permissible, using it oneself is not permissible either.

Source: Fatawa Mahmudiyya

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