Wa `alaykum as-Salamu wa Rahmatullahi wa Barakatuh.
In the Name of Allah, Most Gracious, Most Merciful.
All praise and thanks are due to Allah, and peace and blessings be upon His Messenger.
Dear brother, thank you for your question and for your commitment to Islam’s rulings concerning your financial dealings.
Interest based money is not allowed to use for anything concerning your family or children.
Responding to your question, Dr. Monzer Kahf, a prominent Muslim economist and counselor, stated,
The interest you get from a bank deposits is not owned by you according to Shari`ah. What is not owned by you must be given away to charity and cannot be used in anyway that benefits you.
This includes paying it to your children or their tuition or donation to the school that facilitates their admission. It is like using this interest for your own food and clothes.