Al Riba

"Riba` is a loan with the condition that the borrower will return to the lender more than and better than the quantity borrowed."

Allaah SWT says (interpretation of the meaning):

“Those who eat Ribaa will not stand (on the Day of Resurrection) except like the standing of a person beaten by Shaytaan (Satan) leading him to insanity. That is because they say: ‘Trading is only like Ribaa,’ whereas Allaah has permitted trading and forbidden Ribaa. So whosoever receives an admonition from his Lord and stops eating Ribaa, shall not be punished for the past; his case is for Allaah (to judge); but whoever returns (to Ribaa), such are the dwellers of the Fire — they will abide therein.

Allaah will destroy Ribaa and will give increase for Sadaqaat (deeds of charity, alms). And Allaah likes not the disbelievers, sinners” [al-Baqarah 2: 275-276]

‘Ubaadah ibn al-Saamit (RA) narrated that the Prophet PBUH said: “Gold is to be paid for by gold, silver by silver, barley by barley, dates by dates, like by like, payment being made hand to hand. He who made an addition to it, or asked for an addition, in fact dealt in usury [ribaa].” (Narrated by Muslim in his Saheeh).

It was narrated that Jaabir (RA) said: “The Messenger of Allaah PBUH cursed the one who consumes ribaa, the one who pays it, the one who writes it down and the two who witness it. He said they are all the same.” (Narrated by Muslim).

Note that riba is a very serious and grave issue, seeing that Allah SWT did not declare war in the Qur'an against anyone except the one who accepts riba.

Is it halal or haraam to work in an interest based bank?

You will find the answer in the hadeeth of Jaabir, may Allaah be pleased with him, who said: "The Messenger of Allaah PBUH cursed the one who consumes riba (interest or usury), the one who gives it, the one who writes it down and the one who witnesses it. He said: 'All of them are equal in sin.'" (Reported by Muslim, may Allaah have mercy on him, in his Saheeh, no. 1598)

Commenting on this hadeeth, al-Nawawi, may Allaah have mercy on him, said: This is clearly a prohibition of the writing down or witnessing of a contract between the two parties involved in a riba-based deal. It also includes a prohibition of helping others to commit wrong acts. And Allaah knows best.

It is inevitable that the employee in a riba-based bank will play a part in riba dealings one way or another, even if he is just a security guard. Maybe Allaah will help you, all brothers and sisters, if you are patient, to find halaal employment. (Interpretation of the meaning) "… And whosoever fears Allaah and keeps his duty to Him, He will make a way for him to get out (from every difficulty)." [al-Talaaq 65:2]