Zakat on Cash & Savings
Calculate 2.5% Zakat on current accounts, savings, fixed deposits, and cash at home. No Nigerian bank deducts Zakat for you; here is how to do it 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
- Nigerian banks do not deduct Zakat automatically; the calculation is yours to make
- Include every account: current, savings, fixed deposits, domiciliary, and mobile wallets
- 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, fixed deposits, mobile wallets, and physical cash in all currencies.
Convert foreign currencies
Convert dollar, pound, or other foreign holdings (including domiciliary balances) to naira 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 the Zakat due on your cash and bank balances.
Quick Zakat Estimate
Enter the total value of your cash & savings to calculate
Zakat Due
-
Loading live Nisab...
Full detailed calculatorHow Zakat Collection Works in Nigeria
Nigeria has no federal Zakat law and no automatic deduction from bank accounts. Several Sharia-implementing northern states, including Kano, Zamfara, and Sokoto, run State Zakat Boards or commissions that collect Zakat from those who choose to pay through them and distribute it to eligible recipients. Contributing through a board is voluntary; giving directly to eligible recipients, through your mosque, or through an established Islamic charity is equally valid.
Whichever route you choose, the calculation is yours to make. Your hawl calculation applies to everything: cash at home, every bank account, 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.
Non-interest bank profit
Declared Mudarabah profit is halal income. Include it in your balance and pay Zakat on the total like any other cash.
Contribution schemes (adashe, esusu, ajo)
Money you have paid into a rotating savings scheme 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). Nigerian banks do not deduct Zakat automatically, so the calculation covers every account you hold: current, savings, fixed deposits, domiciliary balances, mobile wallets, and cash at home.
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, fixed deposits, mobile wallets, and physical cash
- No Nigerian bank deducts Zakat automatically; State Zakat Boards accept voluntary payment
- Conventional interest is given away entirely as purification, separate from Zakat
How to cite this page
Preferred format:
For time-sensitive claims (rates, fees, state availability), please verify directly with the provider's official documentation and note the retrieval date.
Sources and review process
This page is reviewed against HalalWallet editorial standards and source documentation.
Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-03-06
Important: HalalWallet provides educational information and comparisons to help you explore halal financial options. We do not provide financial, legal, or religious advice. Product structures and Shariah compliance oversight vary by provider. Always verify halal compliance directly with providers and consult with qualified Islamic finance advisors or scholars for guidance on specific products and your individual circumstances.
Frequently Asked Questions
Does my bank deduct Zakat automatically in Nigeria?
▾
No. Nigerian banks do not deduct Zakat from accounts. Calculating and paying Zakat on your bank balances is entirely your own responsibility. If you live in a Sharia-implementing state you can choose to pay through the State Zakat Board, but that is voluntary; nothing is taken from your account automatically.
How do I pay Zakat once I have calculated it?
▾
Distribute it to the eight categories of recipients named in the Quran. Practical routes in Nigeria include a State Zakat Board or commission in Sharia-implementing states, established Islamic charities, your mosque's Zakat committee, or direct giving to eligible individuals you know. Verify that any organization actually distributes to Zakat-eligible recipients.
What if my balance changes during the year?
▾
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?
▾
Yes, both count: current accounts, savings accounts, fixed deposits, mobile money and fintech wallet balances, and physical cash. The account type does not matter; if it is your money, it is zakatable.
What about domiciliary accounts?
▾
Convert foreign currency holdings, including domiciliary account balances in dollars or pounds, to naira at the current exchange rate on your Zakat date, then include them in the total.
Is profit from a non-interest savings account treated like interest?
▾
No. Declared Mudarabah profit from a CBN-licensed non-interest bank such as Jaiz, TAJBank, or Lotus 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.
Reviewed quarterly and updated for major content changes.