Bank Balances
Include
Current accounts, savings accounts, Islamic banking balances, and accessible funds should be included.
Zakat on Savings & Cash
Zakat on Savings, Bank Balances & Cash
Savings and cash are usually zakatable assets. If your total qualifying wealth reaches Nisab and one lunar year has passed, Zakat is generally due at 2.5% of your net zakatable amount.
This page explains how to calculate Zakat on bank balances, current accounts, savings accounts, cash at home, foreign currency, prize bonds, and money owed to you.
✓Cash and bank balances are included
✓Short-term liabilities may be deducted
✓Zakat rate is 2.5% above Nisab
Direct Answer
Is Zakat due on savings and cash?
Yes. Zakat is generally due on cash, savings, bank balances, and other liquid assets when your total zakatable wealth reaches or exceeds Nisab and has remained with you for one lunar year.
Cash at Home
Include
Cash kept at home, in wallets, lockers, or safe boxes should be added to your Zakat calculation.
Foreign Currency
Convert
Convert foreign currency savings into your calculation currency using a reasonable exchange rate.
What To Include
Which savings are zakatable?
All accessible money that belongs to you should usually be counted as part of your zakatable wealth. This includes money in banks, cash at home, and funds you expect to receive.
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Savings accounts: Include the full balance available on your Zakat date.
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Current accounts: Include operational or daily-use balances that belong to you.
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Cash at home: Include cash kept personally, in lockers, or with family members.
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Foreign currency: Convert USD, GBP, EUR, or other currencies into your selected currency.
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Recoverable loans: Include money owed to you if repayment is expected.
Bank Accounts
Zakat on fixed deposits, Islamic savings and profit-bearing accounts
Many donors are unsure how to treat bank deposits and profit-bearing accounts. The key principle is to include the money that belongs to you, while handling impermissible interest carefully according to scholarly advice.
| Account / Asset Type | Usually Included? | How to Treat It |
|---|---|---|
| Current account | Yes | Include the available balance on your Zakat date. |
| Savings account | Yes | Include the principal balance. For conventional interest, seek scholarly guidance on purification. |
| Islamic savings account | Yes | Include the balance and halal profit that belongs to you. |
| Fixed deposit | Usually yes | Include the principal amount. Treatment of profit depends on account type and scholarly guidance. |
| Prize bonds | Generally yes | Include the bond’s redeemable value. Prize winnings may require separate religious guidance. |
Important: Conventional bank interest is a sensitive issue. Many scholars advise separating impermissible interest from your own wealth and disposing of it without intention of reward. For your exact case, follow trusted scholarly guidance.
Worked Example
Example: Zakat on savings in USD
Here is a simple example to help donors understand how savings Zakat is calculated.
| Asset / Liability | Amount | Zakat Treatment |
|---|---|---|
| Savings account | $2,895 | Included |
| Cash at home | $181 | Included |
| Utility bill due | $72.37 | Deducted as short-term payable liability |
| Net zakatable savings | $3,003 | Zakat = $75.08 |
Formula: $3,003 × 2.5% = $75.08. If the net amount is above Nisab and your hawl is complete, this is the estimated Zakat due.
Savings Calculator
Pay Your Zakat
Calculate estimated Zakat on savings and cash
Add bank balances, cash, foreign currency (already converted to your calculation currency), and money owed to you. Deduct short-term liabilities you will pay soon. This is an estimate only—confirm Nisab and hawl separately.
Estimated Savings Zakat
$0.00Tip: Use the full Zakat calculator on Transparent Hands for currency selection, Nisab values, gold and silver, business assets, and donation pre-fill.
Loans & Receivables
What about money owed to you?
If someone owes you money and you expect to recover it, many scholars advise including it in your Zakat calculation. If the debt is doubtful, delayed, or unlikely to be recovered, the treatment may differ.
A practical approach is to include strong recoverable debts in your yearly calculation and ask a scholar about doubtful debts. When recovered later, some donors calculate Zakat from the time the money is received.
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Strong debt: Money you reasonably expect to receive should usually be included.
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Doubtful debt: Money that may not come back requires specific scholarly guidance.
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Short-term dues: Bills and payable liabilities due soon may usually be deducted.
Quick reference
How do you calculate Zakat on savings?
A short summary you can use when checking your Zakat on cash and bank money.
How do you calculate Zakat on savings?
To calculate Zakat on savings, add your bank balances, cash at home, foreign currency, and recoverable money owed to you. Deduct valid short-term liabilities. If the net amount is above Nisab and one lunar year has passed, pay 2.5% as Zakat.
Include all liquid savings you own on your Zakat date.
Deduct bills and short-term debts that are due and payable.
Apply 2.5% only after confirming Nisab and hawl.
FAQs
Zakat on Savings & Cash FAQs
Common questions about bank money, cash, foreign currency, and paying Zakat.
Do I pay Zakat on money in my current account?
Yes. Money in your current account is generally included in your zakatable wealth if your total qualifying wealth reaches Nisab and one lunar year has passed.
Do I pay Zakat on my savings account?
Yes. Savings account balances are generally included in Zakat. For conventional interest, seek scholarly guidance on separating and purifying impermissible income.
Is Zakat due on money I have lent to someone?
If you expect the money to be repaid, it is usually included. If repayment is doubtful, delayed, or unlikely, scholars may allow excluding it until it is recovered.
What about savings in a foreign currency?
Foreign currency savings should generally be converted into your chosen calculation currency using a reasonable exchange rate on your Zakat due date.
Can I deduct bills before calculating Zakat?
Short-term payable liabilities, such as bills due soon, can generally be deducted from your total zakatable wealth before calculating Zakat.
Can I pay my savings Zakat through Transparent Hands?
Yes. After calculating your Zakat, you can pay it online through Transparent Hands to support Zakat-eligible poor patients who need surgery and medical treatment in Pakistan.
Turn Savings Into Shifa
Calculate your savings Zakat, then help a patient receive care.
Your Zakat can support poor patients in Pakistan who cannot afford surgery or medical treatment. Calculate carefully, then donate with confidence through Transparent Hands.
