Muslim Survival Guide

Opening a Bank Account without Interest

Don’t wait. The time will never be just right!

Riba (which means adding something extra to certain products, like selling gold for gold, or by not receiving something when a contract is signed, or paying extra in return for extension of a loan) is haraam because Allaah – who rules as He wills – has forbidden it. No one can ask Him about what He does; He is the One Who will ask people about what they did, on the Day of Resurrection. Allaah has explained that riba is haraam, and warned those who do not give it up, in the aayaat (interpretation of the meaning):

Those who consume interest cannot stand [on the Day of Resurrection] except as one stands who is being beaten by Satan into insanity. That is because they say, “Trade is [just] like interest.” But Allah has permitted trade and has forbidden interest. So whoever has received an admonition from his Lord and desists may have what is past, and his affair rests with Allah . But whoever returns to [dealing in interest or usury] – those are the companions of the Fire; they will abide eternally therein.

Surah al-Baqarah, verses 275-81

How to Open an Interest Free Bank Account in Australia

As Muslims, it is very important for us to stay away from interest. By following these tips you will be able to stay away from interest when you open a Bank Account in Australia.

  • Australia has many banks and a handful of them have a strong presence in Tasmania. The list includes Commonwealth, ANZ, Westpac, NAB etc. It is recommended to check their website for benefits and fees.
  • While looking for bank also check their ATM booth presence, ATM withdrawal rates, customer support services etc.
  • Visit the Bank branch and tell them that you don’t want a savings account which may provide you interest for religious beliefs
  • Current Accounts do not usually have interests involved but may have a monthly fee. If you are a student, usually you would get a student account where the monthly fee is usually waived.
  • If you want an account to keep your savings, it is worth asking for a second current account without a debit card. This second current account can act as a savings account without any interest attached.
  • Double-check with the bank official regarding fees and interest of your final decision.

May Allah save us from interest and reward us for our good deeds. If we are opening up to possibilities it is not impossible to stay away from interest in the modern banking system.

 

 

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