All praise is due to Allāh:

I have previously discussed in detail the concept of bank deposits and stated that the current form of deposit is a new type of transaction that does not fall under the prohibited category of usurious loans. This is because it differs from loans in various aspects, as bank deposits involve similar elements in loan, trust, profit-loss sharing, and agency. Therefore, bank deposit is a sperate case that has its own ruling.

From our point of view, the interest earned on deposits is not inherently prohibited and does not fall under the maxim of “every loan that brings a profit is prohibited.” Although this maxim is often mentioned in the books of jurisprudence, it is a weak insufficient maxim in terms of evidence and application.

Therefore, it is permissible for this person to benefit from the returns on their bank deposit for themselves, and they can choose to donate it or pay Zakāh from it, as it is an income that is not inherently prohibited.

After all, Allāh knows best.

Fatwa issued by Dr. Khālid Naṣr