Zakat: definition, conditions and the 2.5% rate
AmanaFi team · Updated · 1 min read
Zakat is one of the five pillars of Islam: a share of certain wealth is given each year to defined recipients. For savings the usual rate is 2.5%, once the nisab is reached and a lunar year has passed.
The main conditions
On the most widespread view, zakat on money is due when four conditions are met.
- Being Muslim, of age or represented, and free to dispose of your wealth.
- Owning zakatable wealth that reaches the nisab.
- Owning it fully, not out of reach.
- Having completed the hawl: a full lunar year of ownership.
The rate and what it applies to
The 2.5% rate applies to savings, cash, gold and silver held as a store of value, and trade goods. The home you live in, a car for personal use and personal belongings are generally not counted.
Why plan for it
Because zakat falls due on a set date, setting aside a part each month avoids paying a large sum at once. AmanaFi offers a calculation to estimate the amount, to confirm according to the opinion you follow.
Frequently asked
Is zakat the same as sadaqah?
No. Zakat is an obligation with a set rate and conditions, given to specific categories of recipients. Sadaqah is a free gift, at any time and for any amount.
Put it into practice with AmanaFi
Period budget, projects, debts and loans, zakat: free, on mobile.
Open the app