Working in banks and depositing money in them

Answer

There is no doubt that working in banks that deal in ribā [usury] is not permissible, because it helps them in sin and transgression. Allah, Glory be to Him, has said: ﴿وَتَعَاوَنُوا عَلَى الْبِرِّ وَالتَّقْوَى وَلا تَعَاوَنُوا عَلَى الْإِثْمِ وَالْعُدْوَانِ وَاتَّقُوا اللَّهَ إِنَّ اللَّهَ شَدِيدُ الْعِقَابِ﴾ “Help one another in righteousness and taqwā, and do not help one another in sin and transgression. Fear Allah; Allah is severe in punishment” [al-Māʾidah:2]. It is established from the Prophet ﷺ that he cursed the one who consumes ribā, the one who pays it, the one who records it and its two witnesses, and said, “They are all alike.” Muslim narrated it in his Ṣaḥīḥ.

As for depositing money in banks for monthly or yearly interest, that is forbidden ribā by the consensus of the scholars. As for depositing it without interest, the more cautious course is to avoid it, except in necessity, if the bank deals in ribā. This is because depositing money with it, even without interest, helps it in its ribā dealings, so it is feared that the depositor may be counted among those who help in sin and transgression, even if he does not intend that.

What is obligatory, therefore, is to beware of what Allah has forbidden and to seek sound ways of safeguarding and managing wealth. May Allah grant the Muslims success in what brings them happiness, honour and salvation, and make it easy for them to work quickly to establish Islamic banks free of ribā dealings. He is the One in charge of that and able to do it. May Allah send blessings and peace upon our Prophet Muḥammad, his family and his Companions¹.