DONATE NOW APPEALS OUR WORK GET INVOLVED ABOUT RIBA – DONATE YOUR INTEREST £10 £25 £50 Other DONATE NOW 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: Any interest earned from savings accounts, ISAs and other savings investments. Interest earned by lending money, property or goods 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. What is difference between Riba and interest? Essentially there is no difference. “Riba” is the Arabic word which is used in an Islamic context. As with all Islamic affairs, we would recommend consulting an Islamic expert on finance for any concerns, queries or questions you may have. 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. Is Riba a major sin? Riba is generally considered one of the major sins in Islam and explicitly discouraged in the Qur’an. 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 Islamic Relief, your donations help us save lives and are implemented in Shariah-compliant projects. Donate Riba today KEEP IN TOUCH, JOIN OUR EMAIL LIST Get updates about our life-saving work around the world. I am happy to receive updates from Islamic Relief by email (inc. via social media) and SMS We will always treat your personal information with the utmost care and will keep it private (read our privacy policy). You can opt out at any time by contacting us on 0207 593 3232, emailing us at info@islamic-relief.org.uk, or clicking the unsubscribe button on one of the emails you receive from us. SIGN UP CURRENT APPEALS Palestine Emergency Appeal Donate to the Yemen Crisis Appeal Syria Appeal Save a Life in Gaza Emergency Response Coronavirus Appeal RESOURCES Islamic Resources Charity in Islam Islamic Hijri Calendar 2021 Prayer Timetables Ramadan Timetable USEFUL LINKS About Us Annual Reports Board of Trustees Bank Transfer Details Gift Aid Our History Volunteering Where We Work Modern Slavery Statement DATA PROTECTION Privacy Policy (Recently Updated) WHAT WE DO Zakat Sadaqah Clean Water for Life Orphan Care Islamic Will Interest (Riba) Waqf Aqiqah Lillah Ramadan Qurbani CONTACT US Islamic Relief UK, 16 Lower Marsh, London SE1 7RJ 020 7593 3232 (Opening Hours) General Enquiries Complaints & Concerns Media Enquiries CONNECT WITH US © Copyrights 2021 Islamic Relief Worldwide, Inc. All rights reserved. Registered Charity No. 328158 QUICK DONATE One-Off Donation Monthly Donation Select a Fund Sadaqah Zakat Afghanistan Emergency Appeal Palestine Emergency Appeal Winter Appeal Syria Appeal Yemen Appeal On the brink of Famine Emergency Response Where Most Needed Water for Life Orphans and Children Feed The Needy Waqf Funding Futures (a form of Sadaqah Jariyah) We'll assume you're ok with this, but you can opt-out if you wish. Cookie settingsACCEPT