Zakat on Cash & Savings
Calculate 2.5% Zakat on current accounts, savings, Cash ISAs, fixed term deposits, and cash at home. In the UK, you calculate and pay Zakat yourself.
Key Takeaways
- Cash and bank balances are the most straightforward Zakat assets
- Pay 2.5% on all cash held above nisab for one full lunar year
- No UK bank deducts Zakat automatically; you calculate and pay it yourself
- Include current accounts, savings, Cash ISAs, fixed terms, and cash at home
- Declared profit from Islamic banks is halal; conventional interest is given away entirely, separate from Zakat
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 current accounts, savings, Cash ISAs, fixed term deposits, e-money app balances, and physical cash in all currencies.
Convert foreign currencies
Convert dollar, euro, or other foreign holdings to pounds at the current rate on your Zakat date.
Check against nisab
Nisab is the value of 87.48 grams of gold or 612.36 grams of silver. Check today's rates or use our calculator; your total wealth must have stayed above it for a lunar year.
Calculate 2.5%
If above nisab, multiply your total cash by 0.025. That is the Zakat due on your cash and savings.
Quick Zakat Estimate
Enter the total value of your cash & savings to calculate
Zakat Due
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Full detailed calculatorPaying Zakat in the UK
There is no state Zakat collection in the UK: no bank deducts it and no authority assesses it, so the whole calculation is your own responsibility. Pick a consistent lunar anniversary date, total your zakatable assets across every account, and pay 2.5% on the amount above nisab.
You can distribute Zakat directly to eligible recipients or give through a charity that maintains a dedicated Zakat fund. National Zakat Foundation (NZF UK) specialises in collecting and distributing Zakat within the UK, which many scholars encourage since local need qualifies first.
Timing 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
Conventional interest
Interest earned at a conventional bank is haram. Give it all away, separate from Zakat; it does not count toward your Zakat.
Islamic bank profit
Expected profit from a UK Islamic bank is halal income. Include it in your balance and pay Zakat on the total like any other cash.
Money lent to others
Money you have lent and realistically expect to be repaid counts as a receivable; most scholars include amounts you expect to recover.
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 (the value of 87.48 grams of gold or 612.36 grams of silver). In the UK, nothing is deducted automatically: you calculate across all accounts, including Cash ISAs and fixed terms, and pay it yourself.
Key Takeaways
- 2.5% is the standard Zakat rate on cash holdings
- Nisab is the value of 612.36 grams of silver (or 87.48 grams of gold); check current metal prices
- Includes current accounts, savings, Cash ISAs, fixed term deposits, and physical cash
- No UK bank deducts Zakat automatically; calculation and payment are your responsibility
- Conventional interest is given away entirely as purification, separate from Zakat
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Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-03-06
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Frequently Asked Questions
Does my bank deduct Zakat automatically in the UK?
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No. There is no automatic Zakat deduction in the UK; calculating and paying Zakat is entirely your own responsibility. Pick a consistent lunar date, calculate across all your accounts and assets, and pay directly to eligible recipients or through a Zakat-distributing charity such as National Zakat Foundation.
Do I include current and savings accounts?
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Yes, both count: current accounts, savings accounts, fixed term deposits, Cash ISAs, and physical cash. The account type does not matter for Zakat; what matters is that the money is yours and accessible.
What if my balance changes during the year?
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Zakat is based on your balance on your Zakat anniversary date. As long as your total wealth stayed above nisab throughout the lunar year, Zakat is due on what you hold on that date.
Is money in a Cash ISA zakatable?
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Yes. A Cash ISA is just a savings account with a tax wrapper; the balance is fully accessible and fully zakatable. Include the balance plus any profit credited on your Zakat date.
What about foreign currency accounts?
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Convert foreign currency holdings to pounds at the current exchange rate on your Zakat date, then include them in the total. Multi-currency balances at banks like Nomo count the same way.
Is profit from an Islamic savings account treated like interest?
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No. Expected profit from a PRA-authorised Islamic bank is halal income; include it in your wealth and pay Zakat on the total. Interest from a conventional account is different: it should not be kept at all and is given away entirely as purification, separate from Zakat.
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