Taking bank interest on the plea of spending it on the poor
It is not permissible
to take Riba-based interest from banks or other institutions under the pretext of spending it for the benefit of the poor, because Allah forbids Riba in all forms and gives stern warnings against those who deal in it. Furthermore, it is not permissible to give Sadaqah (voluntary charity) from such money, because Allah is pure and good, and He, the Almighty, accepts only that which is pure and good. However, if the said person takes the Riba-based interest, then he should spend it for the benefit of the poor to get rid (Part No. 13; Page No. 354) of it, and not derive any personal benefit from it.
May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.