Original Question: Is it permissible for me to keep my DBS savings account if I ensure that any interest earned is given towards Baitulmal? Is it obligatory to switch to an Islamic savings account?
Answer
In Singapore, most conventional bank savings accounts, such as DBS Bank, treat deposits as loans to the bank and pay a fixed interest in return. Based on the majority of contemporary scholars, this interest constitutes riba, which is prohibited. Donating the interest earned to Baitulmal or other charitable organisations does not make it permissible; rather, it is only a means of disposing of impermissible income to purify one’s wealth, and should not be done with the intention of seeking reward.
If a Muslim does not have reasonable access to Islamic banking, maintaining a conventional account for practical reasons (such as crediting salary or bill payments) while ensuring that any interest gained is disposed of is generally tolerated based on the legal maxim “ المشقة تجلب التيسير “ (Hardship brings about facilitation). However, such concessions are limited by the maxim “ الضرورة تقدر بقدرها ” (Necessity is assessed according to its extent). As Islamic banking accounts are available in Singapore (such as those offered by Maybank Islamic and CIMB Islamic), Muslims are encouraged to support the Islamic finance industry by opting for Islamic banking accounts, Islamic financing, and takaful where possible.
IFSG is of the view that while keeping a conventional bank account may be tolerated in cases of genuine need, Muslims should make a conscious effort to switch to Islamic savings accounts whenever reasonably possible. This is consistent with the legal maxim “ مَا جَازَ لِعُذْرٍ بَطَلَ بِزَوَالِهِ ” (What is permitted due to an excuse ceases once the excuse no longer exists), and reflects not just the obligation to avoid riba, but also the broader responsibility to support Shariah-compliant financial institutions and the continued development of the Islamic finance ecosystem in Singapore.
فَٱتَّقُوا۟ ٱللَّهَ مَا ٱسْتَطَعْتُمْ وَٱسْمَعُوا۟ وَأَطِيعُوا۟ وَأَنفِقُوا۟ خَيْرًۭا لِّأَنفُسِكُمْ ۗ وَمَن يُوقَ شُحَّ نَفْسِهِۦ فَأُو۟لَـٰٓئِكَ هُمُ ٱلْمُفْلِحُونَ ١٦ (Quran 64:16)
“So be mindful of Allah to the best of your ability, hear and obey, and spend in charity, that will be best for you. And whoever is saved from the selfishness of their own souls, it is they who are ˹truly˺ successful. “
The verse above reminds Muslims that while genuine hardship may warrant certain concessions, they should always strive to fulfil Allah’s commands to the best of their ability, stay away from prohibitions and adopt alternatives whenever it’s available.
And Allah knows best.
You may refer to our previously answered FAQ on similar questions here: 134 and 135.
