Do I pay zakat on my savings account?
Yes. Money in savings and checking accounts is zakatable, just like cash at home. If your total zakatable wealth is at or above the nisab on your zakat date, you pay 2.5% of it. Interest the bank paid you doesn't count as yours, so leave it out and give it away separately.
Cash is zakatable
Zakat on money was set by the Prophet Muhammad ﷺ: on 200 dirhams held for a year, five dirhams were due (Sunan Abi Dawud 1573), which is 2.5%. Today's bank balances are simply money in a different form, so all your accounts count: current, savings, online banks, digital wallets and cash in a drawer.
Which balance do I use?
Balances go up and down all year, and you don't need to track every day. The usual method is:
- Set a fixed zakat date (one lunar year after you first reached the nisab).
- On that date, add up the balance of all your accounts.
- Add other zakatable assets, subtract debts due now, and pay 2.5% if the total is above the nisab.
A paycheck that arrived last month still counts. Scholars apply the year to your total wealth, not to each deposit separately, which keeps it simple. See When do I have to pay zakat?
What about interest?
Interest (riba) is forbidden, so it isn't considered your money. Subtract it before calculating, then give it away without expecting reward, and consider moving to an account that doesn't pay interest. See What do I do with interest money from my bank account?
Emergency funds and joint accounts
- Emergency fund: still zakatable. Its purpose doesn't exempt it. The same goes for savings for a house or wedding; see Do I pay zakat on money I'm saving for a house or wedding?
- Joint accounts: each person pays zakat on their own share.
- Money you're holding for others (like a group collection) isn't yours, so it doesn't count.
- All bank balances count toward zakat.
- Use your total on your zakat date.
- Leave out interest and give it away.
- Savings for a goal are still zakatable.
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