Zakat on Cash and Savings
Cash and savings are among the most straightforward zakatable assets. In most practical cases, people total the cash they own and can access on their Zakat date, then calculate Zakat after comparing to nisab.
This guide explains what counts as cash, how to handle bank balances and salary savings, how people treat common situations like bills, and how to calculate in a clean consistent way.
What counts
Owned and accessible
In practice, money you own and can access on your Zakat date is commonly included as zakatable cash.
Where it sits
Bank and cash
Cash on hand, current accounts, savings accounts, and similar balances are commonly treated as cash assets.
Simplest method
Total on your Zakat date
Many people total their balances on their Zakat date each lunar year, then calculate after nisab comparison.
Cash basics
What counts as cash for Zakat
The practical rule most people follow is simple: if it is money you own and can access, it is usually treated as zakatable cash.
Commonly included
- Cash in hand
- Balances in current and savings bank accounts
- Money stored in payment apps that you can withdraw
- Cash equivalents you can instantly convert to money
Often confused items
- Money you cannot access right now
- Funds locked by legal restriction
- Amounts you do not truly own
- Short term obligations and how deductions are handled
Practical principle
If you can access the money and it belongs to you, it is typically included. If it is not yours, or you cannot access it, it may require separate treatment. Consistency and honesty in what you count is essential.
Salary
Zakat on salary and monthly savings
Zakat is generally not calculated on income the moment you earn it. Many people pay on what they have saved and still own on their Zakat date.
A practical way to handle salary is to focus on your Zakat date. On that date, you total the money you still own: cash, bank balances, and other zakatable assets. This avoids complicated month by month tracking and keeps your method consistent.
Simple approach
Total what remains saved
On your Zakat date, include the balances you still own. The part you spent during the year is not in your possession and is not counted.
Advanced approach
Track over time
Some people track balances throughout the year. If you prefer detail, you can do that, but only if you can stay consistent and accurate.
Examples
Practical examples for cash and savings
These examples show the most common way people total cash and bank balances on their Zakat date before calculating.
Example 1
| Cash in hand | 1,000 |
| Bank balances | 9,000 |
| Total cash | 10,000 |
Compare your total to nisab. If you meet nisab and your timing conditions are satisfied, calculate Zakat on the total (commonly 2.5%).
Example 2
| Current account | 6,500 |
| Savings account | 12,000 |
| Cash in hand | 500 |
| Total cash | 19,000 |
This method is simple and repeatable: on your Zakat date, total what you own, then calculate consistently every year.
Evidence
Qur’an & Sahih Hadith references
These references establish Zakat as an obligation and clarify its purpose and seriousness. We use Qur’an and authenticated Sahih narrations.
Qur’an
Command to establish prayer and give Zakat
Qur’an 2:43
Pairs salah and Zakat as core obligations, showing Zakat is a foundational duty.
Qur’an
Give Zakat and do good
Qur’an 2:110
Reinforces accountability and encourages consistent righteousness, including Zakat.
Qur’an
Zakat recipients
Qur’an 9:60
Defines who Zakat can be given to, which helps you plan and distribute correctly.
Qur’an
Zakat purifies wealth
Qur’an 9:103
Shows the purification aspect of giving and the spiritual benefit tied to Zakat.
Hadith
Islam built upon five pillars (includes Zakat)
Sahih al-Bukhari 8
Places Zakat among the pillars of Islam, showing it is central and must be fulfilled.
Hadith
Five pillars narration (includes Zakat)
Sahih Muslim 16
Corroborates the pillars narration in Sahih Muslim, strengthening foundational evidence.
Hadith
Warning against withholding Zakat (gold and silver)
Sahih Muslim 987a
A strong warning showing the seriousness of fulfilling Zakat obligations responsibly.
Hadith
Zakat obligation in Islam
Sahih al-Bukhari 1395
Authentic narration related to obligations of Islam, supporting the seriousness of Zakat.
Note: Some details like liability deductions and special cases can differ by scholarly opinion. The best practice is a consistent method, clear records, and seeking trusted guidance for your situation.
FAQ
Common cash and savings questions
Clear answers for the most common questions people ask about Zakat on bank balances, cash, and savings.
Do I pay Zakat on all money in my bank account?▾
Cash held in bank accounts is commonly treated as zakatable if it is owned and accessible. Many people total their balances on their Zakat date and include it in their zakatable assets.
Do I pay Zakat on my salary?▾
Zakat is generally due on saved zakatable wealth, not on income itself. Many people include whatever remains saved and owned on their Zakat date along with other zakatable assets.
What about money set aside for bills or rent?▾
People often ask about short term obligations. Some liabilities may be deductible depending on what is actually due and the scholarly approach you follow. A consistent method is important.
Do I need to track the exact balance for the whole year?▾
Many people calculate on their Zakat date using balances on that day. Some prefer more detailed tracking. The best approach is the one you can follow consistently and accurately.
What is the simplest safe approach?▾
Choose one Zakat date, total your cash and bank balances on that date, subtract eligible liabilities if your method allows, compare to nisab, then calculate and pay.
Next steps
Calculate, then expand to other assets
Cash and savings are usually the easiest part. Next, include other assets you own like gold, investments, or business assets if they apply to you.
About this Content
Written by the Zakat Finance editorial team. All content is based on authentic Islamic scholarship and is reviewed regularly to ensure accuracy. The content aims to provide guidance on Zakat calculation and does not replace advice from a qualified Islamic scholar.
Last updated: February 2026
Method note: We present common scholarly approaches to Zakat calculation, encouraging consultation with trusted scholars for personal cases.