FatwaNationalTransactions & Finance
Wang Faedah
May Muslims or Islamic institutions accept interest from bank savings, and how should it be used?
Short answer
The 3rd Muzakarah of the National Fatwa Committee in January 1971 ruled that interest on bank savings may be accepted by Islamic institutions, businesses or welfare bodies run by Muslims.
A reference, not a fatwa. First sentence of the summary below — read the original fatwa and consult your state authority before acting.
- Authority
- National Fatwa Committee (JAKIM)
- Date
- Status
- Fatwa committee decision
- Series
- Kompilasi Pandangan Hukum Muzakarah Jawatankuasa Fatwa MKI (JAKIM, terbitan 2016)
- Topic
- Transactions & Finance
No evidence of gazettement in the source — this is not a gazetted fatwa.
Summary
The 3rd Muzakarah of the National Fatwa Committee in January 1971 ruled that interest on bank savings may be accepted by Islamic institutions, businesses or welfare bodies run by Muslims. This was permitted on the ground of the economic emergency facing Muslims at the time. An individual Muslim may also accept such interest for the same reason, but it must be channelled to the Baitulmal or used for public benefit.
Written in our own words from the original fatwa — check the source before acting on it.
Faedah yang diperolehi daripada wang simpanan seseorang muslim dalam mana-mana bank harus diterima olehnya atas alasan kerana kecemasan itu juga, tetapi wang faedah itu hendaklah dimasukkan dalam Baitulmal atau untuk kegunaan maslahah umum.
Read the full fatwa on the National website (new tab)
How to cite
Cite the original fatwa and its authority. Rujuk Fatwa is only where you found it.
National Fatwa Committee (JAKIM). “Wang Faedah”, 22 January 1971. https://www.islam.gov.my/images/ePenerbitan/KOMPILASI_MUZAKARAH_MKI_2016.pdf#wang-faedah. Found via Rujuk Fatwa: https://rujukfatwa.com/en/fatwa/ruling-on-bank-interest-money/