[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:
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)