Assalamu'alaikum w.w.

Though permissible to give to non-Muslim poor and
needy it is best and preferrable to dispose of
interest money by giving it to poor Muslims without an
intention of reward.

Similalry, it is permissible to pass on the money to
charities who will ensure that it is given to the poor
and needy.

Allah (SWT) Knows Best.
(Mufti) Abdullah Patel.