Zakat on Cash & Savings
Calculate 2.5% Zakat on checking accounts, savings, money market accounts, and all liquid cash holdings. Step-by-step guide with 2026 Nisab thresholds.
Key Takeaways
- Cash and bank accounts are the most straightforward Zakat assets
- Pay 2.5% on all cash held above Nisab for one full lunar year
- Includes checking, savings, money market, CDs, and physical cash
- Convert foreign currency to your base currency for calculation
- Interest earned on accounts should be donated separately (purification)
What Cash Is Subject to Zakat?
All cash and cash equivalents that you own and have held for a full lunar year (Hawl) are subject to Zakat, provided your total wealth exceeds the Nisab threshold. This includes:
Cash set aside for specific purposes may have different treatment depending on scholarly opinion. Some scholars exclude cash earmarked for immediate expenses or debts. Always verify with qualified Islamic scholars.
How to Calculate Zakat on Cash
Add up all cash holdings
Sum checking, savings, money market, CDs, and physical cash in all currencies.
Convert foreign currencies
Use current exchange rates to convert all holdings to your base currency (USD).
Check against Nisab
Ensure your total eligible wealth has exceeded the Nisab threshold for one full lunar year.
Calculate 2.5%
If above Nisab, multiply your total cash by 0.025 to get the Zakat amount due.
Quick Zakat Estimate
Enter the total value of your cash & savings to calculate
Zakat Due
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Full detailed calculatorTiming and the Hawl Requirement
Zakat on cash is only due if your wealth (including cash) has been above the Nisab threshold for a full lunar year (Hawl — 354 days). If your cash balance fluctuates but remains above Nisab throughout, calculate Zakat on the amount at the end of your Zakat year.
Important
If your wealth drops below Nisab at any point during the year, the Hawl period resets. You must start counting again once your wealth exceeds Nisab.
Special Considerations
Interest-bearing accounts
Interest earned is haram. Donate it to charity separately from Zakat (purification).
Emergency funds
Some scholars include all cash regardless of purpose. Others may exclude essential living expenses.
Down payment savings
Money saved for specific purchases is usually included. Scholar opinions vary.
Joint accounts
Calculate Zakat only on your share of jointly held accounts.
Quick Answer
Zakat on cash and savings is 2.5% of your total liquid assets held for one lunar year, provided the amount exceeds the Nisab threshold. This includes checking accounts, savings accounts, cash on hand, and money market accounts.
Key Takeaways
- 2.5% is the standard Zakat rate on cash holdings
- Nisab threshold is approximately $6,500 based on silver value in 2026
- Includes checking, savings, money market, CDs, and physical cash
- Calculate based on your balance at the end of your lunar year
- Interest earned on accounts should be donated separately as purification
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Sources and review process
This page is reviewed against HalalWallet editorial standards and source documentation.
Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-03-06
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Frequently Asked Questions
Do I pay Zakat on all my cash?
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Generally, yes — if your total wealth exceeds Nisab for a full year. Some scholars may exclude cash for immediate expenses. Consult qualified advisors.
What if my balance changes during the year?
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Calculate Zakat based on your balance at year-end. As long as wealth stayed above Nisab throughout, Zakat is due.
Do I include checking and savings?
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Yes. All bank accounts — checking, savings, money market, CDs — are included.
What about cash in different currencies?
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Convert all holdings to your base currency using current exchange rates, then calculate 2.5% of the total.
Reviewed quarterly and updated for major content changes.