Zakat on Bank DPS and the Interest Ruling

Short answer: (1) Your deposited principal is your wealth — add it yearly to your other cash and pay 2.5% once above nisab, since a DPS can be broken and the principal recovered (even with a penalty). (2) The fixed-rate 'profit' of a conventional bank is in reality riba — haram to keep; rid yourself of any accrued amount by giving it to the poor or public welfare without expecting reward, and it can never count as zakat. Details: No zakat is due on the interest portion — it is not your lawful property at all; it must be given away entirely. Zakat applies only to your own principal. Going forward, choose shariah-compliant alternatives (genuine mudarabah savings, gold saving, etc.). Evidence: Quran 2:275; Quran 2:279 (your principal is yours upon repentance); Sahih Muslim 1598 (the curse on all parties to riba); the Permanent Committee and Shaykh Ibn Baz on disposing of bank interest. For complex individual cases, consult a qualified scholar.