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.

As-salamu alaykum wa rahmatullahi wa barakatuh. 

This is regarding the fatwa of the Islamic Research Academy in which respected scholars legalize interest on money deposited in banks. They say that determining the percentage of interest is subject to special economic studies. That is to say, it is not fixed but fluctuates according to prices, and so on. The percentage of interest, they claim, is also subject to the principle of public interests. 

But really, I'm not fully satisfied with this fatwa. So what is your opinion on this issue?

In the name of Allah, the Most Merciful, the Grantor of Mercy

All praise belongs to Allah, and may prayers and peace be upon Allah’s final Messenger.

The Prophet (blessings and peace be upon him) said,

"الخراج بالضمان."

"Profit follows liability." Reported as part of a hadith by the five, and authenticated by at-Tirmidhi and al-Hakim, with whom adh-Dhahabi concurred.

No transaction in Islam may guarantee profit on capital without liability. This is riba.

Definition and types of riba: 

Riba (usury/interest) is given many definitions. In the language, it means increase. Technically, it is an increase in one of the two properties transacted or deferment of payment in one of two cases:

1- In sales: Exchanging the usurious items mentioned in the hadith for something of the same kind. This is called riba al-fadl (increase). If the items are of different kinds, but are usurious properties, they may be exchanged with a difference in measure. However, they must be exchanged without deferment. If one was deferred, that would be a type of riba called riba al-yadd (hand; here it means handing).

2- In loans: Increasing the payment in exchange for deferment. This is called riba an-nasee’ah (deferment). This is defined as: “Every loan that results in increase is riba.” This statement was reported from the Prophet with controversial authenticity, but it is an agreed upon legal maxim.

Riba is forbidden by consensus. Allah has said,

{يَا أَيُّهَا الَّذِينَ آمَنُوا اتَّقُوا اللَّهَ وَذَرُوا مَا بَقِيَ مِنَ الرِّبَا إِن كُنتُم مُّؤْمِنِينَ * فَإِن لَّمْ تَفْعَلُوا فَأْذَنُوا بِحَرْبٍ مِّنَ اللَّهِ وَرَسُولِهِ وَإِن تُبْتُمْ فَلَكُمْ رُءُوسُ أَمْوَالِكُمْ لَا تَظْلِمُونَ وَلَا تُظْلَمُونَ.}

{O you who have believed, fear Allah and give up what remains [due to you] of interest, if you should be believers. And if you do not, then be informed of a war [against you] from Allah and His Messenger. But if you repent, you may have your principal — [thus] you do no wrong, nor are you wronged.} [Al-Baqarah 2:279-280; Sahih International]

Muslim reported from Jabir, 

"لَعَنَ رَسُولُ اللَّهِ - صَلَّى اللَّهُ عَلَيْهِ وَسَلَّمَ - آكِلَ الرِّبَا وَمُوكِلَهُ وَكَاتِبَهُ وَشَاهِدَيْهِ وَقَالَ: هُمْ فِي الْإِثْمِ سَوَاءٌ."

“The Messenger of Allah (blessings and peace be upon him) cursed the one who consumes [takes or demands] usury, the one who feeds him, the scribe and two witnesses, and he said: They are the same.”

Allah knows best. 

Related fatawa: 81188, 81316, 84980