Zakat on Cash & Savings
Calculate 2.5% Zakat on current accounts, savings, term deposits, and cash at home. Understand the nisab threshold and how to distribute Zakat in the UAE.
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
- UAE banks do not deduct Zakat automatically; calculating and paying it is your responsibility
- Include every account and currency: cash, gold, and other assets all 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, digital wallets, and physical cash in all currencies.
Convert foreign currencies
Convert dollar, pound, or other foreign holdings to dirhams 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. That is your Zakat on cash; add it to your Zakat on other asset types.
Quick Zakat Estimate
Enter the total value of your cash & savings to calculate
Zakat Due
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Full detailed calculatorHow Zakat Payment Works in the UAE
The UAE has no compulsory Zakat deduction from bank accounts. Calculating and paying Zakat is each Muslim's personal responsibility. Once you have your figure, you can distribute it directly to eligible recipients, give through licensed charities that maintain Zakat funds with Shariah supervision, or pay through the UAE's federal Zakat Fund, which distributes Zakat through official channels.
Whichever route you choose, your own hawl calculation applies to everything you own: cash at home, all bank 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
Mudarabah profit is halal income. Include it in your balance and pay Zakat on the total like any other cash.
Money you have lent out
Loans you realistically expect to be repaid count toward your zakatable wealth; most scholars allow deferring Zakat on doubtful debts until recovery.
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 UAE there is no automatic deduction from bank accounts; you calculate and pay Zakat yourself, and can distribute it directly, through licensed charities, or through the federal Zakat Fund.
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, digital wallets, and physical cash
- UAE banks do not deduct Zakat automatically; you calculate and pay it yourself
- 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 UAE?
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No. UAE banks do not deduct Zakat from accounts. Calculating and paying Zakat is your personal responsibility. You can distribute it directly to eligible recipients, through licensed charities, or through the UAE's federal Zakat Fund, which accepts voluntary Zakat payments.
Which accounts do I include in my calculation?
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All of them: current accounts, savings accounts, term deposits, digital wallet balances, and physical cash. Add everything you own on your Zakat anniversary date, in every bank and every currency.
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.
Do I include money in prize-linked savings accounts?
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Yes. The balance in a prize-linked account such as ADIB Ghina or Emirates Islamic Kunooz is your money and counts toward zakatable wealth like any other savings balance.
What about foreign currency accounts?
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Convert foreign currency holdings to dirhams at the current exchange rate on your Zakat date, then include them in the total. Zakat is due on all your cash regardless of currency.
Is profit from an Islamic savings account treated like interest?
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No. Mudarabah profit from a CBUAE-licensed 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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