Quora Answer: Do We Pay Zakat Separately for the Cash & Gold We Have?

بِسۡمِ ٱللهِ ٱلرَّحۡمَـٰنِ ٱلرَّحِيمِ

The following is my answer to a Quora question: “If someone has above the nisab of gold, and a small amount of money saved in the bank, does she need to pay zakat separately?” 

The nisab for gold and cash is calculated differently because they are different classes of assets.  You cannot simply lump everything together and then calculate zakat based on net worth.  In the same manner, funds in different bank accounts should be treated according to what they are there for, since zakat is payable upon excess funds from your savings, not your income. 

If, for example, money in a specific account is for a specific purpose, and the money is held for that, that money is not savings.  There is no zakat for that.  Likewise, money held in trust is not yours, so there is no zakat payable by you.  Money loaned out is also not liable for zakat since you have no ownership of it until it is returned.  Money in a fixed deposit, or any sort of account, where you cannot exercise full discretion over use, is not liable for zakat until it is unencumbered.



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