FatwaPenangTransactions & Finance
WANG FAEDAH BANK
What is the ruling on bank interest money, and may it be used for charitable purposes?
Short answer
Bank interest money is haram and may not be used for any form of welfare.
A reference, not a fatwa. First sentence of the summary below — read the original fatwa and consult your state authority before acting.
- Authority
- Penang State Mufti Department
- Date
- Status
- Fatwa committee decision
- Series
- Keputusan Fatwa Negeri Pulau Pinang (e-Fatwa)
- Topic
- Transactions & Finance
No evidence of gazettement in the source — this is not a gazetted fatwa.
Summary
Bank interest money is haram and may not be used for any form of welfare. An exception is made for uses tied to the general public interest, namely filling in land of mosque grounds or cemeteries and building their fences. This was the decision of the Penang fatwa meeting in 1976.
Written in our own words from the original fatwa — check the source before acting on it.
Mesyuarat bersetuju memberi pendapat bahawa wang faedah bank itu adalah haram dan tidak boleh digunakannya bagi segala kebajikan
Read the full fatwa on the Penang website (new tab)
How to cite
Cite the original fatwa and its authority. Rujuk Fatwa is only where you found it.
Penang State Mufti Department. “WANG FAEDAH BANK”, 11 November 1976. http://efatwa.penang.gov.my/fatwa_details.php?fatwaid=1004. Found via Rujuk Fatwa: https://rujukfatwa.com/en/fatwa/ruling-on-bank-interest-money-use/