Educational content only. We explain the definition of Riba (Usury) vs Profit in the context of modern UK banking.
"It's only £2.50 a month, surely that doesn't count?" This is a common question. Many Muslims believe there is a "minimum threshold" for Riba (Interest) before it becomes sinful.
Scholarly consensus overview
The 'Quantity' Myth
In Islam, the prohibition of Riba (Interest) is absolute. It is not dependent on the amount, the intent, or the poverty of the recipient.
The Prophet (saw) cursed the one who consumes Riba, the one who pays it, the one who writes it down, and the two who witness it. He said: "They are all equal." (Sahih Muslim).
This means receiving £0.50 of interest on a savings account carries the same classification of sin as receiving £50,000.
1. Test the Threshold
Visualize why "small" amounts do not change the ruling using this interactive explainer.
The "Drop of Wine" Rule
Does a small amount of interest make it permissible? Move the slider to test.
Still Haram (Riba)
Just as a single drop of wine is forbidden, a single penny of interest is forbidden.
Analogy: If you add 1ml of poison to a glass of water, the water is contaminated. If you add 100ml, it is also contaminated. The volume does not change the toxicity.
2. Finding Alternatives
If you cannot use a standard savings account, where should you put your money? You have two main Halal options in the UK:
- 0% Current Accounts: For day-to-day money (holding wealth).
- Shariah Savings Banks: For growing wealth (investing).
Find a Riba-Free Alternative
3. Purification (Fixing it)
If you have accidentally accumulated interest in your account (e.g. you didn't realize your current account paid interest), you must "dispose" of it.
This means giving that specific amount to charity. You cannot use it for yourself (buying food, clothes) or for paying fines/taxes. It must leave your possession.
Purification Planner
If interest has already entered your account, you must "wash" your wealth by giving it away.
(Based on 1 year accumulation)
How to dispose?
Give this amount to any charity (e.g. Islamic Relief, local food bank). Important: Do not expect "Sadaqah reward" for this. The reward is only for purifying your main wealth.
Where scholars usually draw the line
Common misunderstandings regarding inflation and 'offsetting'.
- • Inflation Offset: Some argue that interest just matches inflation, so it's not "gain". The majority of scholars reject this. Money is money; if you lend £100 and get back £105, it is Riba, regardless of inflation.
- • "Bank Charges" Offset: You generally cannot keep interest to "pay off" bank fees. The interest itself is unclean and must be removed.
Summary
- No Minimum: Even £0.01 of interest is Haram.
- Switch Account: Move to a 0% Current Account or a specific Islamic Bank (Al Rayan, Gatehouse) for savings.
- Donate the Excess: Calculate any interest earned and donate it to charity immediately to purify your wealth.
Frequently Asked Questions
Can I give the interest to my poor relatives?
What if I can't calculate the exact amount?
Transparency
How we wrote this
We combined the classical definition of Riba (increase without counter-value) with modern banking terms. We referenced rulings from major Fiqh councils regarding "inflation adjustment" to ensure the advice is mainstream and safe.
- Sahih Muslim (Book of Transactions)
- Rulings on 'Inflation and Riba' (Islamic Fiqh Academy)