Zakat on Savings and Bank Accounts
Cash is the most common form of zakatable wealth — yet also the most often miscounted. Here is exactly what to include, what to leave out, and how to work out the 2.5%.
Is money in the bank zakatable?
Yes. All cash you own is subject to zakat, whether it sits in your hand, a current account, a savings account, a wallet app, or under the mattress. Money is one of the clearest categories of zakatable wealth, because it is a store of value you can freely use. The place you keep it makes no difference — what matters is that you own it and it has been in your possession, along with your other wealth, for one lunar (Hijri) year.
The rule in one line
If your total zakatable wealth — cash plus gold, silver, business stock and money owed to you — has stayed at or above the nisab for one full lunar year, you pay 2.5% of it on your chosen zakat date. Cash is simply added in at its face value on that date; you don't average the balance over the year or use the lowest point. Two common myths to drop: you do not pay only on the amount above the nisab (it applies to the whole sum), and you do not wait for each individual deposit to complete its own year — your wealth is treated as one pool.
What to include
- Cash in hand and in all current and savings accounts.
- Foreign currency — converted to your local currency at the rate on your zakat date (our Currency Converter helps here).
- Committee / BC / ROSCA money you have already contributed and expect to receive back.
- The principal of fixed deposits, savings certificates and prize bonds — the amount you put in.
- Money you have lent to reliable borrowers and expect to be repaid.
- Digital wallets and mobile-money balances (e.g. easy-wallet type accounts).
What you can leave out
Zakat is not charged on money already committed to essential, immediate needs, nor on non-trade assets. You may exclude your salary the moment before it is spent on genuine living costs — but any savings that remain after a year are counted. Also excluded are your home, personal car, furniture and belongings. And you may subtract debts that are due now, such as this month's bills, rent, or a credit-card balance you are about to pay, before applying the 2.5%.
A worked example
On her zakat date, Ayesha has 250,000 in a savings account, 30,000 in a current account, 20,000 cash at home, and 50,000 already paid into a monthly committee she will collect later. She is also owed 40,000 by a cousin who always repays. That is 390,000 of zakatable cash. She has a credit-card bill of 25,000 due this week, which she subtracts, leaving 365,000. As this is above her nisab, her zakat on savings is 365,000 × 2.5% = 9,125. Divide by 40 to check: 365,000 ÷ 40 = 9,125 — the same answer.
The tricky part: bank interest
Money kept in an interest-bearing account raises a separate question. The great majority of scholars hold that interest (riba) is impermissible to keep as personal wealth. The common guidance is that any interest received should be given away to those in need without expecting reward — and this is not the same as paying zakat. In other words, you don't use zakat to "purify" interest, and you don't count interest as part of your own wealth. Your original savings (the principal) remain fully zakatable as normal. Because rulings on specific products differ, ask a qualified scholar about your particular account or certificate.
When exactly is it due?
Zakat on savings becomes due once your wealth has been at or above the nisab for one lunar year (about 354 days). Most people fix a single annual date — many choose a day in Ramadan for the extra reward — and simply value their cash and other assets on that date each year. If your balance dipped below the nisab briefly during the year but was above it at the start and end, most contemporary scholars still consider the year continuous. Count exact days with the Days Calculator or convert your Hijri date with the Hijri Date Converter.
Frequently asked questions
Do I pay zakat on money in my bank account?
Yes — cash in current and savings accounts is fully zakatable. If your total wealth has stayed at or above the nisab for one lunar year, you pay 2.5% of the balance on your zakat date.
Is zakat due on the whole balance or only the amount above nisab?
On the whole balance. The nisab only decides whether zakat is due; once you reach it, 2.5% applies to the entire zakatable amount.
Do I pay zakat on the interest my account earned?
Most scholars say interest (riba) should not be kept and should be given away to the needy without seeking reward — separately from zakat. You still pay zakat on your original savings.
How do I calculate zakat on a fixed deposit or committee money?
Include the principal you have contributed as zakatable wealth each year. For any profit or return, ask a scholar, as the ruling depends on the product.
Do I pay zakat on my salary?
Not on income as it arrives, but on whatever remains as savings after a lunar year. Money spent on genuine living costs during the year is not counted.