Question:
We are receiving interest on one of our bank accounts. On another account we are paying interest as it was an installment purchase. Can we off set one against the other.
Answer:
اَلـجَـــــوَابُ حَــامِـــــداً وَّمُــصَلِّــــياً
At the onset, every Muslim should understand that it is Haraam to engage in any interest-based transaction. Be it, through taking loans from the bank, opening an account which accumulates interest, or any other way which includes paying interest due to an instalment purchase. Nabi صلى الله عليه وسلم has cursed the one who consumes Riba (interest), the one who gives it, the one who writes it down and the one who bears witness to it, and Nabi صلى الله عليه وسلم said: they are all equal (in sin).[i]
Hence, under all costs a Muslim should avoid any involvement in Interest. If due to some unavoidable scenario, a person is unable to avoid accruing interest, then the Ulema have ruled that it should not be collected, kept and allowed to accumulate. One should immediately dispose of such funds, by giving it out to the poor without any hope or intention of reward.
With regard to your query, if both accounts are of the SAME BANK then it will be permissible for you to offset the interest payment with the interest earned.[ii]
And Allāh Ta`ala Alone in His Infinite Knowledge knows best
Answered By: Ml Ridhwaan Moosa
Checked and Approved by Mufti Yacoob Vally Saheb D.B
[i]
#1598 صحيح مسلم
عَنْ جَابِر رضي الله عنهٍ، قَالَ لَعَنَ رَسُولُ اللَّهِ صلى الله عليه وسلم آكِلَ الرِّبَا وَمُوكِلَهُ وَكَاتِبَهُ وَشَاهِدَيْهِ وَقَالَ هُمْ سَوَاءٌ .
البحر الرائق (229/8)
ويردونه على أربابه إن عرفوهم، وإلا يتصدقوا به؛ لأن سبيل الكسب الخبيث التصدق إذا تعذر الرد
رد المحتار على الدر المختار (حاشية ابن عابدين) (99/5)
والحاصل أنه إن علم أرباب الأموال وجب رده عليهم، وإلا فإن علم عين الحرام لا يحل له ويتصدق به بنية صاحبه
رد المحتار على الدر المختار (حاشية ابن عابدين) (6/ 385 )
وقال في النهاية: قال بعض مشايخنا: كسب المغنية كالمغصوب لم يحل أخذه، وعلى هذا قالوا لو مات الرجل وكسبه من بيع الباذق أو الظلم أو أخذ الرشوة يتورع الورثة، ولا يأخذون منه شيئا وهو أولى بهم ويردونها على أربابها إن عرفوهم، وإلا تصدقوا بها لأن سبيل الكسب الخبيث التصدق إذا تعذر الرد على صاحبه اهـ
* Business and Commerce in the Light of Islam (Madrassah Taleemudin)
(Page 536 – Using Interest Money to Pay off Interest from a Bank)
* Darul Iftaa Azaadville Fatwa # 1443 – 995