Zakat on Cash & Savings
Calculate 2.5% Zakat on current accounts, savings, term deposits, and cash at home. Understand how bank deduction works in Pakistan and when to file a CZ-50.
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
- Pakistani banks deduct Zakat from savings accounts on 1st Ramadan unless you file a CZ-50
- Bank deduction covers one account only; cash, gold, and other assets still need self-calculation
- 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, term deposits, mobile wallets, and physical cash in all currencies.
Convert foreign currencies
Convert dollar, pound, or other foreign holdings (including RDA balances) to rupees at the current rate.
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. Subtract any Zakat your bank already deducted this year so you don't pay twice on the same balance.
Quick Zakat Estimate
Enter the total value of your cash & savings to calculate
Zakat Due
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Full detailed calculatorBank Deduction vs Self-Calculation
Pakistan is one of the few countries where Zakat collection is written into law. Under the Zakat and Ushr Ordinance 1980, banks deduct 2.5% from savings and profit-bearing accounts on the valuation date (1st of Ramadan) when the balance exceeds the nisab amount notified by the government for that year. Current accounts and foreign currency accounts are not subject to deduction. If you prefer to calculate and distribute Zakat yourself, or follow a fiqh with different rules, file a CZ-50 declaration with your bank at least 30 days before Ramadan; the bank then skips the deduction.
Whichever route you choose, remember that bank deduction only covers the deducted account. Your own hawl calculation still applies to everything else: cash at home, current accounts, gold, shares, and business assets.
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
Declared Mudarabah profit is halal income. Include it in your balance and pay Zakat on the total like any other cash.
Committee (BC) savings
Money you have paid into a rotating savings committee is 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 Pakistan, banks also deduct 2.5% from savings accounts on 1st Ramadan under the Zakat and Ushr Ordinance unless you file a CZ-50 declaration; that deduction covers only the deducted account, so other assets still need self-calculation.
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, term deposits, mobile wallets, and physical cash
- Banks deduct from savings accounts on 1st Ramadan unless a CZ-50 is filed at least 30 days prior
- 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 Pakistan?
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Under the Zakat and Ushr Ordinance 1980, banks deduct 2.5% from savings and profit-bearing accounts on the Zakat valuation date (1st of Ramadan) if the balance exceeds the nisab amount the government notifies each year. Current accounts are not subject to deduction. Account holders who prefer to pay Zakat themselves, or who follow a fiqh that calculates differently, can file a CZ-50 declaration with their bank to opt out of deduction.
If the bank deducts Zakat, am I done?
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Not necessarily. Bank deduction covers only that account's balance on the valuation date. Cash at home, other accounts, gold, shares, and business assets still need self-calculation. Many people also pay on their own hawl date rather than 1st Ramadan, which is one reason to file the CZ-50 and self-calculate everything consistently.
What if my balance changes during the year?
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For self-calculation, 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.
Do I include current and savings accounts?
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Yes, for your own calculation both count: current accounts, savings accounts, term deposits, mobile wallets like JazzCash and easypaisa balances, and physical cash. The bank's automatic deduction, by contrast, applies only to savings and similar profit-bearing accounts.
What about foreign currency accounts?
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Convert foreign currency holdings, including Roshan Digital Account balances, to rupees at the current exchange rate on your Zakat date, then include them in the total. Foreign currency accounts are exempt from the bank's automatic deduction, but Zakat is still due on them personally.
Is profit from an Islamic savings account treated like interest?
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No. Declared Mudarabah profit from an SBP-regulated 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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