Dealing with Riba, also known as interest, is forbidden for Muslims. Riba refers to forbidden financial gain in Islamic finance. Islamic finance promotes financial transactions that are ethical and equitable. Donate interest money to charity and dispose of it in a halal way today.
Yes, both receiving interest and paying it is haram (forbidden for Muslims). Sometimes, we are left with interest money accumulated through bank accounts. The question is then, what are we supposed to do with interest money?
We already know that we cannot use it for our own benefit, so we should donate it to charity. There is no reward for doing so, but this allows us to dispose of it in a halal way.
Riba is interest gained or paid on savings or transactions. Examples of riba include:
To donate Riba to charity, you should give the total amount of interest accumulated or earned. For example, the total interest money that has been accumulated in a savings account.
In the Holy Quran, Allah (SWT) tells us to not engage in interest-based transactions or investments: “O you who believe! Fear Allah and give up what remains [due to you] of interest, if you are true believers.” (2:278)
Large amounts of interest can cause debt and financial insecurity, particularly exploiting those on low incomes or without financial safety nets. Instead, Muslims are encouraged to partake in non-interest-based giving, charity and long-term investments that can benefit others, like Sadaqah Jariyah projects. Interest-free loans are also a preferred alternative to interest-bearing loans or personal loan contracts that involve riba, as interest-free loans do not promote interest or exploitative gain.
In an ideal scenario, we should not invest or engage in interest-based activities whatsoever. However, this may not always be possible, such as if your bank provides extra interest. In such cases, you should take note of interest gained and donate the money to charity in a way that is Shariah-compliant. At Global Rahmah Foundation, we recognise that interest is forbidden and are here to help purify your earnings. Donate your riba today in a Shariah-compliant way.
To donate over the phone, Call: 0161 302 7888 and ask for the fundraising team
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
To donate by Bank, please use account name Global Rahmah Foundation Sort code: 30-90-89 Account Number: 26800563