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Donate Interest Money (Riba)




Riba, also known as interest, refers to forbidden financial gain in Islamic finance, promoting ethical and equitable transactions.

Riba - Interest

Islam forbids interest (Riba), both receiving and paying it. Many of us can end up accumulating interest through our bank accounts even if we don’t want it, so what should we do with Interest money?

 

Since it is not permissible to utilise interest for one’s own benefit one should donate it to charity. Although there is no religious reward for doing so it at least disposes of the haram funds in a shariah-compliant way.

What is considered Riba in Islam?

In Islam, Riba is interest gained or paid on transactions or savings. This includes:

 

  • 1. Any interest earned from savings accounts, ISAs and other savings investments.
  • 2. Interest earned by lending money, property or goods.
  • 3. Payments of interest for credit card fees, loans or mortgages.

 

In the case of donating Riba to charity, you would be required to donate the amount of interest earned e.g. the money accumulated as savings interest.

Why Riba is prohibited in Islam?

Allah (SWT) tells us in the Holy Qur’an to not engage in interest-based transactions/investments:

 

“O you who believe! Fear Allah and give up what remains [due to you] of interest, if you are true believers.” (2:278)

 

High levels of interest can lead to debts and financial insecurity, exploiting people on low incomes and without a financial safety net.

 

Islam instead encourages non-interest-based giving, charity and long-term investments for the benefit of others such as Sadaqah Jariyah and Waqf projects. Zakat also ensures a social-security net for people in need.




What should we do with interest money? 

 

Ideally, we should not invest/engage in interest-based activities. However, this may not always be possible.

In this case, you can keep note of any interest earned and donate the money to charity in a Shariah-compliant way (for halal purposes).

Here at Global Rahmah Foundation, your donations help us save lives and are implemented in Shariah-compliant projects.

More Ways to Donate

Over the Phone

To donate over the phone, Call: 0161 302 7888 and ask for the fundraising team

By Cheque

To donate by Cheque, please make it payable to Global Rahmah Foundation and send us to: Unit 21, Waters Edge Business Park, Modwen Road, Salford, Manchester, M5 3EZ

By Bank Transfer

To donate by Bank, please use account name Global Rahmah Foundation Sort code: 30-90-89 Account Number: 26800563