Wondering whether money in the bank is subject to khums? The short answer: maybe — it depends on whether the funds are from earned income and whether they remain unused at the end of your khums-year.
In general, money that sits in your bank account and is not spent by the end of your khums-year becomes subject to khums. In other words, any wealth that remains until the end of the khums year and is not used should have its khums paid.
Regarding bank deposits, some marājiʿ (senior jurists) believe that the profit (interest) earned on bank deposits is also subject to khums because that profit is considered a form of income. But other marājiʿ hold that the interest on deposits is not subject to khums while it remains unwithdrawn.
Therefore, to know precisely whether your bank deposits are subject to khums, it is best to consult the ruling of your own marja (religious authority). Below are some important points about khums on bank deposits:
Khums year: Your khums year begins at the time when khums became obligatory on you for the first time.
Not having been used: Money placed in your bank account that remains unused until the end of the khums year is liable to khums.
Deposit profit: Concerning the profit from bank deposits, some jurists consider it subject to khums, while others argue that as long as it has not been withdrawn, it is not subject to khums.
Juristic rulings of the Grand Ayatollahs on this matter
Question: Does money deposited in a bank that yields profit become subject to khums?
Grand Ayatollahs Imam, Sistani, Fazel and Makarem: If the deposited money stems from earned income, it is subject to khums. However, if by paying khums (even in instalments) the person would be unable to support their livelihood, then khums is not obligatory.
Grand Ayatollahs Bahjat, Tabrizi and Nouri: If it is income from business or earnings, the portion of the deposited money that the person needs to run their life is not subject to khums; but any amount beyond what is needed is liable to khums.
Grand Ayatollahs Khamenei, Safi and Vahid: If the deposited money is from earned income, it is subject to khums; and if paying khums would prevent the person from making a living, they may refer the matter to the religious judge (ḥākim sharʿī) to arrange it.
