Question
Question: What is the ruling on depositing in usurious banks and transferring from them and to them, etc.?
Answer
The answer—and Allah is the granter of success: If the intent is safeguarding one’s money in the bank, there is no objection. What is prohibited in dealings with banks and others is:
— That you borrow from it on condition that you repay more than you borrowed.
— Or that you give it money on condition that it pay you “interest.”
If the dealing is free of these two usurious transactions, there is no objection to dealing with it; the Prophet—May Allah bless him and his family and grant them peace—used to transact with the Jews in buying and selling and to enter into debts with them, while knowing they were people of usury.
Yes—if the increase does not exceed the fee for recording, bookkeeping, safekeeping, and the like, then there is no harm in it.
Source: Min Thimār al-ʿIlm wa al-Ḥikmah vol.2
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