Title: Is saving in current account exempted from zakah?

Question: (1) Is saving in current account exempted from zakah? If not, what will be the procedure or calculation of it? (2) I paid flat 2.5% zakah last year on my account. Was that correct?

Answer ID: 67413Posted on: Sep 1, 2020

Bismillah hir-Rahman nir-Rahim !

(Fatwa: 1121/1133/N=11/1437)

(1) No! Whatsoever currency a man has its zakah is wajib on him on completion of the year as per the lunar calendar, whether it is in saving or current account or in the house or in the pocket.

فى البحر: فى المعراج في فصل زكاة العروض أن الزكاة تجب فى النقد كيفما أمسكه للنماء أو للنفقة ، وكذا فى البدائع في بحث النماء التقديري اهـ ، قلت: وأقره فى النهر والشرنبلالية وشرح المقدسي وسيصرح به الشارح أيضاً ونحوه قوله فى السراج: سواء أمسكه للتجارة أو غيرها ، وكذا قوله فى التاترخانية : نوى التجارة أو لا؟ (رد المحتار ، اول كتاب الزكاة ، 3: 178، 179، ط: مكتبة زكريا ديوبند).

(2) Whatsoever business goods, gold, silver and currency you have on the day when the year of your zakah completes you must pay the fortieth part (2.5 %) of the total value as zakah. However, if you received some interest on the amount deposited in the bank then there is no need to pay its zakah. As the amount of interest is filth and the man is not its owner rather that money should be left in the banks in Islamic countries or it can spent in non-Shariah taxes and in non-Islamic countries it should be given in charity without the intention of reward.

(3) Yes, it was correct.