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Fatwa CenterHow to dispose of interest from the bank
Question
As Salaamu AlaykumA group of Muslim brothers work for the State of California, several years ago the governor force public workers to take furlough (2 free days without pay). The employees Union sued the government and wan. A check was sent to the employes with the equivalent salary of the days they were force to take off without pay plus and additional check from interest collected until the court made a decision. Should the Muslim workers cash the check for the interest collected over their 2 day salaries for the furlough days.Jazaki Allah KhairnWas Salaamu Alaykum
Answer
All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad 
is His slave and Messenger.
The interest added to the money saved in the bank during the period in which the case was being studied in court is unlawful and one must get rid of them by giving them to the poor and needy. The person who has taken possession of this money is not entitled to use it for his own benefit unless he is poor.
An-Nawawi said: “If he gives it (the unlawful money) to the poor, this money is not unlawful to them (the poor); rather, it is lawful for them and pure; and he may spend it on himself and his family if he is poor, because if his family is poor, then they meet this description (of being poor). In fact, there is more reason to give it in charity to them than anyone else. And he himself can take (money) in proportion to his need because he is also poor.” [End of quote]
Also, you should not leave the interest in the bank; rather, you should take it and spend it as mentioned above.
Allaah Knows best.
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