The Short Answer
Yes. Zakat is due on fixed deposits if the total amount meets the nisab (minimum threshold) and has been held for one lunar year (haul).
Fixed deposits are a form of savings. Islam treats all forms of accumulated wealth the same way when calculating zakat.
What Is Nisab?
Nisab is the minimum amount of wealth a Muslim must hold before zakat becomes obligatory. It is based on the value of 85 grams of gold or 595 grams of silver.
In Singapore, the nisab is updated regularly by MUIS (Majlis Ugama Islam Singapura). As of 2025, the nisab is approximately S$7,900 based on the gold standard. Check the current value before calculating.
How to Calculate Zakat on Fixed Deposits
The calculation is straightforward:
1. Add up all your fixed deposits. Include every account, regardless of the bank or tenure.
2. Add your other savings. This includes regular savings accounts, cash on hand, and investments.
3. Subtract any debts due within the year. This includes loans, credit card balances, and other financial obligations.
4. Check if the total meets the nisab. If yes, proceed to step 5.
5. Pay 2.5% of the total. This is your zakat obligation.
Example: You have S$20,000 in fixed deposits, S$5,000 in savings, and S$3,000 in debts. Your zakatable amount is S$22,000. Your zakat is S$550.
Common Questions
"My fixed deposit hasn't matured yet. Do I still pay zakat?"
Yes. Zakat is based on the value of your wealth, not on whether you can access it immediately. The deposit still belongs to you.
"What about the interest earned?"
The Shafi'i school considers bank interest as non-permissible income. Scholars advise Muslims to give away the interest portion as sadaqah (not zakat). The principal amount is still subject to zakat.
"Do I pay zakat on each fixed deposit separately?"
No. Add all your deposits and savings together. Calculate zakat on the total.
"When do I pay?"
Pay zakat once a lunar year (haul) has passed since your wealth first reached the nisab. Many Muslims choose to pay during Ramadhan for the added reward, but it is valid any time.
Why Zakat on Savings Matters
Zakat purifies wealth. It ensures that a portion of accumulated savings reaches those in need. Fixed deposits sitting in a bank still grow — zakat ensures that growth benefits the community.
Paying zakat is one of the five pillars of Islam. It is both an act of worship and a social responsibility.
Pay with Confidence
If you are unsure about your calculation, consult a zakat officer or use an online zakat calculator. Perdaus accepts zakat payments and ensures your contribution reaches eligible recipients (asnaf).
