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Zakat on FD

Answered according to Hanafi Fiqh by Darulifta-Deoband.com
I have a Fixed Deposit (taken last year for tax relief) of Rs 1,50,000 in a bank. But I can never withdraw the amount up to 5 years. Even I tried to withdraw the money due to my crisis. But bank says it is lock in period of 5 years. So, should I pay zakah every year for that fixed deposit or after withdrawal.

بسم الله الرحمن الرحيم

(Fatwa: 414/356/D=05/1440)

 

The amount which you have fixed its zakah is wajib on you. If you pay it each year then it is better but if you pay the zakah of all the previous years together when you receive the amount then it is also better.

 

It is not lawful to have fixed deposits in banks as it is interest based dealing; the extra amount which you will get from original amount shall be interest and it is wajib to give it in charity without an intention of reward.

Allah knows Best!

Darul Ifta,
Darul Uloom Deoband

This answer was collected from the official ifta website of Darul Uloom Deoband in India.

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