Money, explained

Gulf personal finance, explained once and properly — terms defined plainly, guides that get updated rather than replaced, and calculators that work in real riyals.

Zakat on cash is levied at 2.5% a year, calculated on whatever sits above the nisab once a full lunar year has passed. If your balance at Al Rajhi Bank is SAR 85,000, the zakat due comes to SAR 2,125.

What counts towards the zakatable base?

• Cash in current and savings accounts
• Gold and silver, once they reach nisab
• Shares held for trading, at market value
• Debts you reasonably expect to be repaid