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Zakat on Money Saved in a Bank

❓ Question
Is Zakat due on money saved in a bank?
Answer

All praise is due to Allah, and peace and blessings be upon the Messenger of Allah.

Money deposited in a bank is considered monetary wealth subject to Zakat, and it becomes obligatory under the following well-known conditions:

  1. Reaching the Nisab: The amount must equal the value of 85 grams of 21-karat gold.
  2. Completion of one lunar year (Hawl): A full Islamic lunar year must pass over the ownership of the funds.
  3. The money must be lawfully earned (halal).

Accordingly, whoever has money in a bank that has reached the Nisab and over which a full lunar year has passed, is obligated to pay Zakat at a rate of one-quarter of one-tenth (2.5%).

And Allah knows best.

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