Question details | Usage of Pension and Retirement Funds by Interest based Banks | Ask Hidayah | Hidayah Academy | Usage of Pension and Retirement Funds by Interest-based Banks

Transactions Interest

Usage of Pension and Retirement Funds by Interest-based Banks

Question:- My question is about the ruling on the usage of pension and the concessions we receive on retirement from an interest-based (conventional) bank?

Answer:- Since the whole system of a conventional or an interest-based bank is based on interest, working for one is forbidden and any earnings made are also forbidden. Hence pension and any other concessions received on retirement from such an employment is also forbidden. If someone has been using such earnings, then they should seek repentance with a purity of heart and give whatever is left to poor without any expectations of reward.