Zakat on an Islamic-Bank Mudarabah Deposit

Short answer: Zakat is due on the principal amount of a mudarabah savings account and its profit if the total reaches the nisab (minimum threshold) and one lunar year passes. The profit is treated as part of the wealth and is zakatable along with the principal. Details: The money in a mudarabah savings account is considered a cash asset. Zakat becomes obligatory when the amount (principal plus any accrued profit) equals or exceeds the nisab of gold or silver (approximately 85g of gold or 595g of silver) and a full lunar year passes. The profit is not separate; it is added to the principal and the entire balance is subject to the 2.5% zakat rate. If the principal alone is below nisab but the profit pushes it above, zakat is due on the total. There is no deduction for bank charges or fees unless they are unavoidable and properly documented. If you receive the profit during the year, it should be included in the calculation from the date it is credited. Evidence: 1. Sahih al-Bukhari 1404 and 1405 establish that no zakat is due on property below five uqiyas of silver (equivalent to the nisab). This sets the minimum threshold for zakat on cash savings. 2. Surah At-Tawbah 9:34-35 condemns those who hoard gold and silver without paying zakat, indicating that savings accounts fall under this obligation. 3. Sahih al-Bukhari 1403 warns of severe punishment for not paying zakat, emphasizing its importance. Closing disclaimer: This fatwa is based on the provided evidence. For complex cases involving multiple accounts, debts, or fluctuating profits, please consult a qualified scholar.