Participating in Bank Promotions and Interest-Based Offers
Question: I recently opened a student checking account with an American Bank for a debit card. After completing 10 qualifying transactions (worth $100), they offer a one-time $100 promotional bonus/gift for opening an account with them. Is it halal to use the money acquired from this?
Summary:
it is not permissible in Islam to accept or participate in promotional offers that encourage others to open accounts with conventional banks, especially in non-Muslim countries where such banks typically operate on interest (riba). Doing so is considered a form of indirect support for an interest-based system, which is explicitly prohibited in the Qur’an.
Answer:
In the name of Allah, all praise is due to Allah, and may Peace and Blessings be upon the Messenger of Allah (ﷺ).
This is not permissible, because by accepting such an offer, you are participating in a promotion that encourages others to open an account with a specific bank. As is well known, most banks in non-Muslim countries operate based on riba (interest).
From the Qur'an:
- [Surah Al-Ma’idah :2]
“…and do not help one another in sin and transgression. Fear Allah. Surely Allah is severe in retribution.”
Engaging in such promotional offers can be seen as a form of indirect advertisement for the bank. Since conventional banks are founded upon interest-based systems - which are clearly prohibited in Islam - it is not permissible to promote or encourage interactions with such institutions.
And Allah knows best.
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