Riba refers to interest or usury in Islamic finance, and its prohibition is one of the foundational principles behind why Islamic financial products are structured differently from conventional interest-based loans and accounts.

Is all interest considered Riba?

Most scholars hold that interest charged or received on loans and debts falls under Riba, though there is some scholarly discussion around specific edge cases, such as incidental interest on bank deposits, which is generally addressed through purification.

How can I avoid Riba in everyday banking?

Options include using Islamic banking products where available, avoiding interest-bearing credit products, and donating any unavoidable interest received (such as from a conventional savings account) rather than keeping or spending it.

Is a mortgage interest deduction relevant if I use a halal mortgage?

Some halal mortgage structures may still qualify for certain tax treatments similar to a conventional mortgage, but specifics depend on the financing structure and current tax rules, so consulting a tax professional is recommended.

Does Riba only apply to loans, or also to savings accounts?

Riba applies broadly to interest received or paid, which is why many Muslims either avoid conventional interest-bearing savings accounts or donate any interest earned rather than keeping it.

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Riba

26 articles·Last reviewed August 11, 2026

Educational resources explaining Riba, its role in Islamic finance, interest-based transactions, halal alternatives, and practical financial questions for Muslims.