Fatwa ID: 06993

Answered by: Alimah Jannatun Nessa

Question:  

An urgent query, Is it permissible to switch bank accounts and accept introductory monetary gifts from the banks like nationwide and First direct? Nationwide bank How to get the £200 bonus: – Open the account online or in-app. – Switch in an account from a different bank, including 2+ direct debits. – The bonus is then paid within 10 days. First Direct How to get the £175 bonus: – Open the account in-app (or online for joint accounts). – Switch in an account from a different bank. – Pay in £1,000+ within three months. – Wait 28 days for the £175 Link to terms and conditions below https://www.moneysavingexpert.com/banking/compare-best-bank-accounts/#nationwideswitch 

In the name of Allah, the Most Gracious, the Most Merciful

Answer:

What you have mentioned above is permissible in Islam and is seen as an incentive to attract customers. It is not seen as riba because they are using money as a means to promote their business rather than using money solely to generate more money. Therefore, it can be considered a gift offered by the bank for opening an account and switching banks. 

Only Allah (عز و جل) knows best.

Written by Alimah Jannatun Nessa

Checked and approved by Mufti Mohammed Tosir Miah

Darul Ifta Birmingham