What is the difference between depositing money in a bank and receiving interest due to the depreciation of money over time, and renting out a house and receiving rent for the same reason?
The difference between giving money to the bank for interest and renting out a house for a known rent is that the first is a transaction involving forbidden usury (riba), while the second is a lawful lease (ijara). Giving money to the bank for interest is considered a loan with an increase, which is forbidden usury, because the principal is guaranteed and the interest is an addition to it. The Messenger of Allah, peace and blessings be upon him, cursed the one who consumes riba and the one who pays it. As for renting out a house, it is taking rent in exchange for a lawful benefit agreed upon by scholars. The depreciation of currency does not justify dealing in usury.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
Read the full answer on Ftawyhttps://ftawy.com/en/questions/38866