Zakat on Bank Accounts and Savings Balances

Short answer: Zakat is obligatory on money held in bank accounts (current and savings) if it reaches the nisab (minimum threshold) and has been in your possession for one lunar year. The nisab for cash is based on silver: 5 awqiyah (approx. 595 grams of silver) or its value. If your balance equals or exceeds this amount at the start and end of the lunar year, you must pay 2.5% of the total balance as zakat (including any additional savings during the year). You may pay in cash or its equivalent. Evidence: 1. Sahih al-Bukhari 1404 and the verse (9:34) warn against hoarding gold and silver without paying zakat, indicating cash equivalents are zakatable. 2. Sahih al-Bukhari 1454 (the letter of Abu Bakr) states the nisab for silver: 'No zakat is due on less than 5 awqiyah of silver.' 3. Sahih al-Bukhari 1403: severe threat for neglecting zakat, showing its compulsory nature. 4. Sahih al-Bukhari 1395: Mu'adh was sent to Yemen to teach zakat, establishing it as a pillar. Please consult a knowledgeable scholar for complex cases involving multiple accounts, debts, or inconsistent balances.