Original Question: Is it permissible for us to use the interest earned from a savings account to pay for school bills etc.? If not, what should I do with it or what can I do with it?

Interest from savings account in a bank is dubious (syubhah) in nature , therefore it is not allowed in its consumption. However some religious scholars may allow it in the consumption of paying taxes or fines etc.

However the general consensus by Ulama is that interest is riba and is haram . Hence the interest must be given to Baitul mal, Baitulmal is a general Islamic fund – Muis has a baitulmal fund.

Pergas and many other organisations who does charity work can also be considered as Baitulmal as it is for the interest of the public.