Answer: Opening a Savings Account in a Conventional Bank

In the Name of Allah, the Most Merciful, the Most Compassionate

Summary Answer

Opening a savings account in a conventional bank (such as Sonali Bank PLC) that operates on interest (riba) is not permissible in Islam. This is because the fundamental basis of such accounts is interest-based transactions, which are categorically prohibited in the Qur'an and Hadith. However, if there is a genuine necessity (darurah) — such as safeguarding money from theft or loss when no Islamic banking alternative exists — one may open a current account (which does not involve interest) as a permissible alternative. A savings account that guarantees or offers interest/profit is not permissible.

Detailed Answer

1. The Prohibition of Riba (Interest) in the Qur'an and Hadith

Allah Almighty states in the Qur'an:

"Allah has permitted trade and has forbidden interest (riba)." (Surah al-Baqarah 2:275)

"O you who have believed, fear Allah and give up what remains [due to you] of interest, if you should be believers. And if you do not, then be informed of a war from Allah and His Messenger." (Surah al-Baqarah 2:278-279)

The Prophet ﷺ said:

"Allah has cursed the one who consumes riba, the one who pays it, the one who writes it down, and the two who witness it." (Sahih Muslim, no. 1598)

2. The Nature of Conventional Savings Accounts

In a conventional bank like Sonali Bank PLC, a savings account operates on the following basis:

• The depositor lends money to the bank.
• The bank uses this money for its investments and lending activities.
• The bank pays the depositor a fixed or variable rate of interest (profit) on the deposited amount.
• This interest is guaranteed regardless of whether the bank makes a profit or loss.

This arrangement constitutes riba al-nasi'ah (interest on loans), which is unequivocally prohibited in Islam. The bank is effectively borrowing money from the depositor with the condition of paying excess (interest) — this is the very definition of riba.

Imam Ibn Abidin (may Allah have mercy on him) states in Radd al-Muhtar:

"Dealing with the people of dhimmah (non-Muslim citizens) in transactions involving riba is not permissible, and likewise, depositing money with them on the basis of interest is not permissible." (Radd al-Muhtar, 4:178)

3. The Ruling of the Hanafi Scholars

Mufti Muhammad Shafi (may Allah have mercy on him) states:

"The savings accounts in conventional banks are based on interest. The bank takes the depositor's money as a loan and pays interest on it. This is clearly riba, which is haram (prohibited) without any doubt. It is not permissible for a Muslim to open such an account or to receive this interest." (Ahkam al-Qur'an, 2:45)

Mufti Taqi Usmani (may Allah preserve him) states:

"The interest-based savings account is not permissible in Shariah. The relationship between the depositor and the bank is that of a lender and borrower, and any excess payment on the principal amount is riba." (Fiqhi Maqalat, 1:115)

Imam al-Kasani (may Allah have mercy on him) states in Bada'i al-Sana'i:

"The prohibition of riba is established by the Qur'an, the Sunnah, and the consensus of the Ummah. It is one of the major sins." (Bada'i al-Sana'i, 7:120)

4. The Ruling on Receiving Interest

If one has already opened such an account or received interest, the ruling is:

• The interest amount must be given away in charity (without the intention of earning reward) to the poor and needy.
• The principal amount (the original deposit) is lawful for the depositor.
• The account should be closed as soon as possible.

Imam Ibn Abidin states:

"If a person takes interest, it is not permissible for him to benefit from it. He must give it away in charity." (Radd al-Muhtar, 4:178)

5. The Exception: Current Accounts

A current account in a conventional bank is different from a savings account in the following ways:

• The bank does not pay any interest on current accounts.
• The relationship is that of a guardian/custodian (wadi'ah) or a guarantor (kafalah).
• The depositor can withdraw money at any time without notice.

The permissibility of current accounts:

According to many contemporary scholars, including Mufti Taqi Usmani, opening a current account in a conventional bank is permissible when there is a genuine need, such as:

• Safekeeping of money from theft or loss
• Facilitating business transactions (cheques, transfers, etc.)
• Receiving salary payments from employers

Mufti Taqi Usmani states:

"If a person needs to open a current account for the purpose of safekeeping or for business transactions, and no Islamic bank is available, then it is permissible to open a current account in a conventional bank, provided that no interest is taken or given." (Fiqhi Maqalat, 1:118)

6. The Alternative: Islamic Banking

If Islamic banking options are available in Bangladesh, it is strongly recommended to use them. Bangladesh has several Islamic banks, including:

• Islami Bank Bangladesh Limited
• Al-Arafah Islami Bank
• Social Islami Bank
• Shahjalal Islami Bank
• EXIM Bank (Islamic Banking Wing)
• Sonali Bank's Islamic Banking Branch (if available)

These banks operate on Shariah-compliant principles such as:

• Mudarabah (profit-sharing) — for savings accounts
• Murabahah (cost-plus financing) — for financing
• Ijarah (leasing) — for asset financing
• Wakalah (agency) — for various services

Important note: Even in Islamic banks, one must ensure that the bank is genuinely Shariah-compliant and has a proper Shariah supervisory board.

7. The Principle of Necessity (Darurah)

If no Islamic banking alternative is available, and there is a genuine need to safeguard money, the following hierarchy applies:

1. First choice: Open a current account (no interest involved).
2. Second choice: If a current account is not possible, and there is genuine fear of loss/theft, one may open a savings account with the intention of not taking the interest — and any interest credited must be given away in charity.
3. Not permissible: Opening a savings account with the intention of earning and benefiting from the interest.

The legal maxim states:

"Necessity makes the prohibited permissible" (al-darurah tubih al-mahzurat) — but this applies only to the extent of the necessity.

Imam al-Sarakhsi (may Allah have mercy on him) states:

"Necessity is measured by its extent. When the necessity is fulfilled, the prohibition returns." (Al-Mabsut, 24:45)

8. Practical Advice for the Questioner

Based on the above, my advice to you is:

1. Do not open a savings account in Sonali Bank PLC that involves interest.
2. If you need a bank account for safekeeping or transactions, open a current account instead.
3. If an Islamic bank is available in your area, open a savings account there — this is the best option.
4. If you already have a savings account with interest, close it as soon as possible and give the accumulated interest to charity.
5. If you are unsure about the details of the schemes, ask the bank for clarification. If the scheme involves guaranteed interest, it is not permissible.

Conclusion

The Prophet ﷺ said:

"Leave that which makes you doubt for that which does not make you doubt." (Sunan al-Tirmidhi, no. 2518)

Opening a savings account in a conventional bank that operates on interest is not permissible in Islam. The alternative is to open a current account (if needed) or to use an Islamic bank. May Allah guide us all to what is lawful and pure.

And Allah knows best.

Answered according to the Hanafi school of jurisprudence, relying on the works of Imam Ibn Abidin (Radd al-Muhtar), Mufti Muhammad Shafi (Ma'ariful Quran, Ahkam al-Qur'an), and Mufti Taqi Usmani (Fiqhi Maqalat, Takmilah Fath al-Mulhim).