I have a combination of savings, shares and insurance. Do I sum them up all, check if it exceeds the nisab, and if yes, I take the net values then times 2.5%? Or do I do the calculation individually on each asset class?
The Zakat for your savings, shares and insurance is calculated separately and not summed up together before performing calculation. This is because the calculation method for each is different:
a. Zakat on Savings: Based on 2.5% of lowest balance in year if this balance does not fall below nisab value.
b. Zakat on Shares: Based on 2.5% of total market value of shares owned at the end of year if this value does not fall below nisab value.
c. Zakat on Insurance: Based on 2.5% of the surrender value when haul and nisab are due.
Related questions
How does one calculate the zakat for shares?
How do I calculate Zakat on Savings for my multiple accounts? Can I take the lowest amount from each of my account books and take 2.5% as my Zakat on Savings?
Which day of the month should I take to calculate my Zakat on Savings? Every end of the month? During payday? Every start of Islamic month?
I have a life insurance, health insurance and home protection insurance. Do I have to pay Zakat for all these insurance or only on the life insurance?
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