Zakat on Savings Certificates and Their 'Profit'

Short answer: (1) The principal of savings certificates is your wealth — since early encashment is possible, add it yearly to your other cash and pay 2.5% zakat. (2) The fixed-rate 'profit' is contractual increase on a loan to the state — riba per evidence-based scholars; it may not be kept, and any received must be given to the poor/public welfare without expecting reward — it never counts as zakat. Details: The structure is a loan to the state repaid with a guaranteed increment — the very form of riba the Quran prohibits. It differs from risk-sharing investment (mudarabah), where no loss-sharing exists here and the rate is fixed in advance. Count only the principal in your zakat; the interest portion is not your lawful property. If dependents rely on it, work towards halal alternatives (business investment, rental property, gold). 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 fixed-rate government certificates. For complex individual cases, consult a qualified scholar.