Fatwa ID: 02213
Answered by Ustaadha Bint Salih.
I have some fixed deposits, which accrues some interest.
Now if I perform Hajj/Umrah from the halal money i.e., not earned from the interest, will it be accepted?
I ask this, because I heard that the prayers of the one who deals with Ribah are not accepted.
I'd also like to know if my other prayers, i.e., Salah, Fasting etc, are accepted as well.
A Fixed Deposit (FD) is a financial instrument provided by banks which provides investors with a higher rate of interest than a regular savings account until the given maturity date. Funds placed in a Fixed Deposit usually cannot be withdrawn prior to maturity or they can perhaps only be withdrawn with advanced notice and/or by having a penalty assessed.
It is incumbent upon you to give the interest money from the bank as charity to the poor who are entitled to receive Zakaat (i.e. who do not have the nisaab of Zakaat) without the intention of receiving reward. This charity is meant only for disposing of an unclean and unlawful money and to relieve oneself from the burden of an ill-gotten gain.
But it should be remembered that this amount is unclean only for the person who has received it as interest. The poor persons who get it from him as charity can use this amount for their personal benefits. (Contemporary Fatawaa: pg. 242, Idara-e-Islamiat)
Only Allah knows best.
Ustaadha Bint Salih.
Darul Ifta Birmingham
Checked and Approved by Mufti Mohammed Tosir Miah