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.
In this fatwa:
In his response to your question, Prof. Dr. Monzer Kahf, Professor of Islamic Finance and Economics at Qatar Faculty of Islamic Studies, states:
Opening a checking account that does not generate interest is permissible because you do not earn or give any interest. It has become a necessity in our times as you notice in your case. We all deal with conventional banks and we make our best to avoid interest.
However, if there is an Islamic bank in your area, it is much better to deal with it because even when you have only a checking account, the bank may use your money anyway.
Allah Almighty knows best.
Editor’s note: This fatwa is from Ask the Scholar’s archive and was originally published at an earlier date.