Zakatable wealth

Zakat on savings, cash and bank accounts

Cash is the simplest category to get right, and the one most people hold the most of.

In short

All cash you hold is zakatable: current accounts, savings accounts, cash ISAs, physical notes and money held in payment apps. Add every balance on your zakat date and pay 2.5 per cent, provided your total net wealth is at or above nisab.

Every account counts, including joint accounts at your share
Emergency funds and house deposits are still zakatable
Interest received is not yours to keep and is given away separately
2.5 per cent applies to the balance held on your zakat date

What counts as cash

Anything you can spend immediately. That includes current and savings accounts, cash ISAs, premium bonds, foreign currency, digital wallets and physical notes at home.

Money saved for a purpose

Saving towards a house deposit, a wedding or a car does not exempt the money. If you still hold it on your zakat date, it is zakatable. The intention behind the saving does not change the ruling.

Interest earned on savings

Interest is not treated as your wealth. It should be given away without expecting reward, and it does not count towards your zakat payment. Keep it separate from the zakat figure so both obligations are met.

A worked example

Current account 1,200 pounds, savings 6,000 pounds, cash ISA 4,000 pounds, cash at home 300 pounds. Total 11,500 pounds. Credit card balance due 500 pounds. Net 11,000 pounds. Zakat due is 275 pounds.

Frequently asked questions

Do I pay zakat on a joint account?

Yes, on your share of it. Where contributions are unequal, pay on the portion that is genuinely yours.

Is zakat due on a pension?

On a pension you can access and withdraw, yes, on the accessible value. Locked workplace pensions are treated differently by different scholars, and many pay once the funds become available.

What about money in a fixed term account?

It is still your wealth, so it remains zakatable even if you cannot withdraw it yet. Pay when the term ends if access is genuinely blocked.