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:
Interest based money is not allowed to use for anything concerning your family or children.
In his response to your question, Prof. Dr. Monzer Kahf, Professor of Islamic Finance and Economics at Qatar Faculty of Islamic Studies, states:
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.
Allah Almighty knows best.
Editor’s note: This fatwa is from Ask the Scholar’s archive and was originally published at an earlier date.