Q. Could you kindly advise me on the disposal of interest funds? I know that it is Haraam to give and receive interest. But how do I get rid of it?
A. The Ifta Committee of the Jamiatul Ulama – Natal has reached the following resolution on the disposal of interest funds:
1) It is not permissible for any Muslim or Muslim organisation to keep money in an interest bearing account for the purposes of collecting interest.
2) If interest has been collected incidentally and not deliberately then one should not delay in disposing the interest.
3) A wealthy Muslim may not derive any benefit from interest money.
4) It is unanimously accepted that interest money should be given to the poor and needy without the intention of sadaqah-charity, but rather intending disposal of haraam money.
5) Some Ulama have allowed the use of interest money for public amenities, i.e. that which the general public is allowed to use, e.g. public roads and public hospitals.
6) A deserving Muslim or Muslim organisation should be given preference over a non-Muslim or non-Muslim organization
And Allah Knows Best