What is Zakat on Cash?
Zakat on cash refers to the annual obligatory payment made on the total amount of money, savings, and investments that a Muslim possesses above a certain threshold (known as the nisab). This includes:
- Cash on hand
- Bank account balances
- Savings accounts
- Investments (stocks, bonds, etc.)
- Gold and silver
Who is Eligible to Pay Zakat on Cash?
A Muslim is obligated to pay Zakat on cash if they meet the following conditions:
- They are an adult and of sound mind.
- They possess wealth above the nisab for a complete lunar year.
- The wealth is in their possession and control.
Calculating Zakat on Cash
The nisab for Zakat on cash is equivalent to the value of 85 grams of gold or 595 grams of silver. The Zakat rate is 2.5% of the total value of the wealth above the nisab.
Where Is Your Zakat Used?
Your Zakat provides a lifeline to those in desperate need. Through the Bonyan Organization, we offer direct cash assistance to poor and needy individuals who are eligible for Zakat in the war and conflict-torn countries of the Middle East and Africa.
Importantly, Bonyan Organization has a 100% donation policy for Zakat funds. This means your entire contribution directly supports those in need.