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Zakat on Savings

How to Calculate Zakat on Savings (One Savings Account)

In order to be able to pay Zakat on Savings, your savings balance must have a minimum amount (Nisab) for a minimum period of time (Haul).

Steps for One Savings Account

Step 1:   Find out the Nisab value (minimum value required for Zakat) by visiting www.zakat.sg or from Berita Harian / Berita Minggu. Step 4:   Identify the lowest balance in the year. This could occur in any period throughout the year.
Step 2:   Open your bank account book and only look at your savings balance throughout the year. It does not matter if you deposit or withdraw money throughout the year, because Zakat on Savings is based on the balance and not on the deposits or withdrawals made. Step 5:   Your Zakat on Savings is:
lowest balance ($) X 2.5%
Step 3:   Look at your balance throughout the past 1 Islamic year (1 Haul)
which is about 355 days.
If in the past year none of your balances have dropped
below the Nisab value, you are eligible for Zakat.
     

Example for One Savings Account

Today's date: 01/04/13
Today's Nisab from the website: $5,677  

Date Deposit ($) Withdrawal ($) Balance ($)
10/04/12 10,000 1,000 9,000
01/07/12 0 1,000 10,000
14/07/12 0 2,000 8,000
21/12/12 1,000 0 9,000
07/01/13 1,000 4,000 6,000
15/02/13 2,000 500 7,500
23/03/13 1,000 0 8,500
01/04/13 0 500 8,000

Throughout the year, my account balance never fell below the Nisab value.

The lowest balance was $6,000 which occurred in the middle of the period.
My Zakat on Savings for Haul period 10/04/12 – 01/04/13 is:
= $6,000 x 2.5%
= $150
 

How to Calculate Zakat on Savings (Multiple Savings Accounts)

Calculating your Zakat on Savings for multiple accounts is similar to the method used for single account. The difference is combining your various savings accounts into a single account.

Steps for Multiple Savings Account

Step 1:   Find out the Nisab value (minimum value required for Zakat) by visiting www.zakat.sg or from Berita Harian / Berita Minggu. Step 5:   Look at your total balances throughout the past 1 Islamic year (1 Haul) which is about 355 days. If in the past year none of your total balances have dropped below the Nisab value, you are now eligible for Zakat.
Step 2:   Open your bank account books and only look at your savings balance for each bank account throughout the year. It does not matter if you deposit or withdraw money throughout the year, because Zakat on Savings is based on the balance and not on the deposits or withdrawals made. Step 6:   Identify the lowest total balance in the year. This could occur in any period throughout the year.
Step 3:   Identify the lowest balance for each bank account in each month. Step 7:   Your Zakat on Savings is:
lowest total balance ($) X 2.5%
Step 4:   Add these lowest balances for each month to get the total balances for each month.      

Example for Mutliple Savings Account

Today's date: Apr 13
Today's Nisab from the website: $5,677  

Date Lowest Balance for
Account 1 ($)
Lowest Balance for
Account 2 ($)
Total Balance for
Accounts 1 & 2 ($)
May 2012 500 6,000 6,500
Jun 2012 3,500 4,000 7,500
Jul 2012 2,300 3,500 5,800
Aug 2012 3,800 2,500 6,300
Sep 2012 5,300 2,000 7,300
Oct 2012 4,200 2,000 6,200
Nov 2012 6,000 1,000 7,000
Dec 2012 5,700 2,300 8,000
Jan 2013 2,300 5,700 8,000
Feb 2013 1,600 4,400 6,000
Mar 2013 1,000 5,000 6,000
Apr 2013 1,200 5,000 6,200

Throughout the year, the lowest total balance for my accounts never fell below the Nisab value.

The lowest total balance was $5,800 which occurred in Jul 2012.
My Zakat on Savings for Haul period May 2012 - April 2013 is:
= $5,800 x 2.5%
= $145.00