I would like to enquire concerning Riba (interest). Which is the best option No.1) to take it from bank and give it away to Muslim charity without expecting reward, so it least its being benefit to Muslim's instead of Kuffar using it against Muslims. Or No.2) not to take it at all by telling the bank not to credit my account with interest.

All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad is His slave and Messenger.

It is unlawful for the Muslim to deposit his/her money in a Riba bank unless he/she is in dire need to protect his/her money while there is no other alternative. This should not exceed the limits of necessity. On the other hand, if the person is given some interests, he should not take them unless he was unaware of them in the first place when concluding the contract with the bank. But if he/she takes such interests, he should not benefit from them himself. Rather, he should spend the interest money in the general welfare of the Muslims or give it to the poor and needy people. But he should not intend giving charity as charity cannot be given from impure things as Allaah is Good and does not accept but that which is good.

It is also forbidden for this person to profit from this interest and he should not leave it for the bank as it increases its unlawful property transactions.

Allaah Knows best.