The ruling on taking Interests of the Banks and spending them on charitable Projects

Question :

We are Turkish workers who work in the Kingdom of Saudi Arabia. Our country, Turkey, as you know, is a country established on secularism in its law and system. Riba is widespread in the country in a very strange way, so much so that the percentage may reach 50% in one year. Here we are forced to send money to our families in Turkey through the banks that are the sources of the Riba and its birthplace. Likewise, we put money into the banks due to fear of stealing, loss and some other dangers. With this considera- tion, we present to your Eminence two important questions in relation to us. Please give us a ruling concerning this matter of ours. May Allâh reward you with the best of rewards from us.

Firstly: Is it permissible for us to take Riba from these banks and give it in charity to the poor and establish acts of goodness instead of leaving it for them to use?

Secondly: If this is not permissible, is it permissible to place the money in these banks due to the excuse of the need to protect it from stealing and loss without receiving the Riba, while knowing
that the bank uses it as long as it is in it? May Allâh guide your steps, bring benefit through you, and direct you to what He loves.

Answer:

If the need calls for transferring money by way of Riba banks, there is no harm in that, if Allâh wills, due to Allâh's Statement:
"Indeed He has explained to you what He has made forbidden for you, except what you are forced (by necessity) to do."

And there is no doubt that transferring money through the banks is among the general necessities in this time. Likewise is the case of depositing money in them due to necessity without stipulating interest gain. If any interest is paid to the person without any condition being stipulated or any agreement being made, there is no harm in taking it and spending it on charitable projects, like helping the poor, those in debt and so forth. It should not be kept for personal possession or benefit. Rather, it has the ruling of wealth that is harmful for the Muslims to leave (in the banks), while it is from the impermissible earnings. Thus, spending it on what will benefit the Muslims is better than leaving it for the disbelievers to use it in what Allâh has forbidden. If it is possible to transfer money by way of Islamic banks or some lawful means, it is not permissible to transfer it by way of Riba banks. Likewise is the case of depositing money. If this can be done in Islamic banks or Islamic businesses, it is not permissible to deposit the money in Riba banks, as the necessity has been removed. And Allâh is the Giver of success.

Source:
Ash-Shaykh Ibn Baz
Fatawa Islamiyah, Vol. 3 Pages 398-399