Is it permissible to use a non-islamic business account that does not accrue interest?
October 18, 2014
Q: Is it permissible to use a non-islamic business account that does not accrue interest for a ltd company?
الجواب حامدا ومصليا ومنه الصدق والصواب
A: It is permitted to use an account of a conventional interest-based bank that does not bear interest for a limited company. Any deposits in the account are essentially a loan to the bank which the bank utilises at its own discretion.
As the bank utilises the funds at its own discretion the account holder is not culpable for the activities of the bank. However, it is far superior to use a deposit account of an Islamic bank as the latter assures the account holder that it will not use the funds for non-Sharia compliant activities.