CALCULATING ZAKAT ON SAVINGS

Zakat on savings is due when your savings account has the minimum amount (Nisab) and held for a minimum period of 1 Hijri year or 355 days (Haul). With this, you have met the conditions Nisab and Haul and you are obligated to fulfil Zakat.

If at any point in the past year, your savings balance fell below the Nisab, your Haul is considered as broken. Your Haul will restart the next time your savings balance meets or exceeds the Nisab again.

Essentially, your savings account balance has to meet or be above the monthly Nisab value for 355 days (1 Hijri year) before you are obligated to fulfil Zakat.

THINGS TO FIND OUT FIRST:

Determine the date when Zakat was last paid OR when your bank balance met the nisab (start of Haul). If you are not sure, give your best estimate.
Determine the end of Haul. If the current date is before that date, then no Zakat needs to be paid. You do not have to proceed further. If the current date is later than that date, Zakat is payable.

Ready to calculate your Zakat and make payment?

IF YOU HAVE ONE SAVINGS ACCOUNT

Look at the balances of your account and find the lowest amount within that Haul period.
If the amount is below the Nisab, there is NO Zakat for that account. You do not have to proceed further. If the amount is more than Nisab, proceed to next step.
Zakat amount is:
Lowest balance × 0.025

IF YOU HAVE MULTIPLE SAVINGS ACCOUNT

Write down the dates and the lowest balances of each of the accounts that you own.
Add up the lowest amounts from each accounts according to months. For example, add up the lowest balances for March 2013 - February 2014.
Zakat amount is:
Combined Lowest Amount × 0.025

EXAMPLE (MULTIPLE SAVINGS ACCOUNTS)

The above shows the lowest balances for several months of 2014 across all accounts.

The lowest amount in the haul (2014) is $34,090.

Zakat payable: $34,090 × 0.025 = $852.25

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