Fatwa · Money & Transactions
What is the difference between zakat and sadaqah?
Zakat is an obligatory annual duty with defined recipients; sadaqah is voluntary giving at any time.
The answer
Zakat is one of the pillars of Islam. It becomes due on qualifying wealth that reaches the nisab and is held for a lunar year, at a standard rate of 2.5 per cent. It is not a voluntary gift but a right that the poor have in the wealth of those who are able. The Qur'an specifies the categories of people who may receive it.
Sadaqah is voluntary giving. It can be any amount, offered at any time, and is not restricted to money. A meal, a lift, a kind word or practical help can all be forms of sadaqah. It does not require a minimum threshold or a fixed annual date.
The two overlap in spirit but differ in obligation and rules. Zakat must be calculated and paid with care; sadaqah can be given freely alongside it. Giving both, regularly and discreetly where possible, supports those in need and softens the heart. For questions about which recipients qualify, ask a qualified scholar.
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Do I need to pay zakat on money held in a savings account?
Zakat applies to qualifying savings held for a lunar year once they reach the nisab threshold.