Do I Need to Pay Zakat on Funds Kept in a Bank Account?

Yes, you are required to pay Zakat on the money kept in your bank account, provided it meets the necessary conditions.

Here’s what you need to know:

• Yes, Zakat applies to money in your current bank account, as long as it meets the necessary criteria.
• Time Requirement: Zakat is due on money that has been in your account for a full lunar year (355 days).
• Nisab Threshold: If the amount in your account exceeds the zakat nisab threshold (equivalent to 85 grams of gold or 595 grams of silver), you must pay Zakat on it. Ensure to check the current market rates for accurate zakat calculation.
• Surplus Wealth: Zakat applies to surplus wealth, not money used for immediate needs or expenses. Therefore, only the amount that remains untouched for a year qualifies.
• How Much to Pay: The Zakat due is 2.5% of the total amount that has been in your account for a year and exceeds the Nisab.
• Accuracy: Track your savings and the duration of the funds in your account to ensure that you pay the correct amount. Zakat is due on savings held for a full lunar year.

By following these guidelines, you can fulfill your Zakat obligation properly. 

In addition to paying Zakat on savings, your contributions can extend to supporting worthy causes. Pakistan Sweet Home, as an orphanage NGO, plays a pivotal role in the lives of orphaned children. The organization ensures they receive the care and support they need to thrive. 

By donating to this cause, you become a part of a compassionate community working to make a lasting impact on these children's futures.

In the same way, when we consider our duty towards helping the less fortunate, we understand that every act of kindness and generosity counts. Pakistan Sweet Home continues its mission of providing care and protection, and supporting homes for orphans is a meaningful way to contribute. Your involvement can make a difference in the lives of children who need it most.

And Allah knows best!

 Other Zakat Questions You May Have

• Does Earned Interest Affect Missed Zakat Payments?
• Is Money Saved for Buying a House Liable for Zakat?
• Are Gift Cards with Cash Balances Subject to Zakat?
• Is Zakat Required on a Cheque?
• Should Zakat be Paid on Contest Winnings Not Yet Received?
• How is Zakat Applied to Inherited Cash?