As per the below reference,
The excess money given by the banks and the post offices in the countries as India, Britain and south Africa etc is legal for the Muslims,and is not considered as interest .it may be taken and used. Can you please guide is in this confusing statement?
My dear brother,
Assalam u Alaikum Wa Rahmatullah
The laws of Allah are universal. Allah has made interest clearly forbidden through the Holy Qur'an. Anything that will be understood as interest according to the definition of Shariah will be considered Haram and forbidden. This prohibition will remain effective whether the Muslim is living in a Muslim country or a non-Muslim country. Likewise, the prohibition will remain effective whether the Muslim is dealing in interest with another Muslim or a non-Muslim. The view of some scholars that interest transaction are allowed between Muslims and non-Muslim is based on a very weak Hadith, thus it is challenged by the majority of Muslim jurists and scholars.
Therefore, if someone accrues interest on their money while living in non-Muslim countries, will also be considered Haram. Any money that is earned as interest must be distributed among poor/needy without the intention of earning reward from Allah.
And Allah knows best.
Mufti Ikram ul Haq
Fatwa Center of America