Zakat on Savings Account UK 2026
All cash savings — whether in an easy access account, a Cash ISA, a fixed-term bond, or a current account — are included in your annual Zakat calculation at 2.5% of the balance on your Hawl date.
Which savings accounts are zakatable?
Worked example — multiple savings accounts
Example: Saver with three accounts
| Current account (Barclays) | £1,200 |
| Easy access savings (Marcus) | £6,000 |
| Cash ISA (Nationwide) | £8,500 |
| Total cash savings | £15,700 |
| Gold jewellery (18ct, 25g) | £1,593 |
| Total zakatable wealth | £17,293 |
| Less: credit card balance due | − £350 |
| Net zakatable wealth | £16,943 |
| Zakat due (2.5%) | £423.58 |
Bank interest — what should you do?
If you hold your savings in a conventional (interest-bearing) account, the interest credited to your account is considered riba under Islamic law. Most scholars advise:
- Do not include interest in your wealth — donate it to charity without seeking reward
- Pay Zakat on the principal (capital) balance only
- Some scholars hold that since the interest forms part of your bank balance, you should include it in the Zakat total as well (to purify it)
If you hold savings in a Sharia-compliant account (such as Gatehouse Bank or Al Rayan Bank), no interest is involved — the full balance is zakatable without this consideration.
The Hawl date and savings fluctuations
Zakat is calculated on the balance you hold on your Hawl anniversary date — not the average over the year. If you saved £20,000 during the year but spent £15,000 before your Hawl date, you calculate Zakat on the remaining £5,000. If your savings dipped below the Nisab during the year, the Hawl resets.