[Zakat in Practice (part 9) ]
[Introduction: This series is a sharing on zakat from the perspective of a financial planner. It is hoped to be educational, informative as well as practical to help readers better understand Zakat, especially Zakat on Wealth, as a Muslim in Singapore.
Topics to include: Zakat on Investment, Zakat on Savings, and Zakat on Estate.]
[Previously: Zakat on Gold]
Zakat on Savings comes in 2 forms:
- Savings in the bank
- Savings plan with insurance companies
Savings in the bank can be further categorised as:
- Accessible
- Non-accessible
By accessible, they are accounts that one can easily withdraw his money from, such as:
- Savings account
- Current account
By non-accessible, they are accounts that are usually “locked in” for a certain period or tenure, such as:
- Fixed deposit
Each of these accounts require a different approach in gauging when zakat is due/liable.
It is a common mistake and misunderstanding to regard them as the same, or to combine the amounts in all those accounts together and paying zakat on the total amount.
(To be continued)
Financial Planning with M Farhan 
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