Q 1: Is it permissible for a Muslim to deal with banks that add interest to deposits or lend money with interest?

A: A person is not permitted to deposit money in banks that give him a fixed yearly interest rate, or to borrow from banks that ask him to pay interest at the time when they agree about the terms of repaying the lent money, like for example to pay to the creditor interest equal to 5% of the loan. These two examples are Riba (usury/interest). They are prohibited according to the Qur'an, Sunnah and Ijma` (consensus of scholars). These issues are evident by Allah's favor.One should not deposit money in banks, even without receiving interest, unless he is in a dire need for that. (Part No. 13; Page No. 370) Otherwise, one is not permitted to deposit money in banks as doing so supports their owners to use their money in Riba. Allah (Exalted be He) says: Help you one another in Al-Birr and At-Taqwâ (virtue, righteousness and piety); but do not help one another in sin and transgression. If there is a necessity to deposit money in banks, then it will be permissible to do that. Moreover, it is permissible to transfer money from one bank to another in return for a fee. The additional money that the bank receives is permissible as it is taken as a fee in return for the transfer operation. May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.