Must the financial security deposit paid for an apartment rental be included in the annual Zakat calculation, and is it permissible to distribute Zakat to several people while informing them that it is Zakat?
The amount referred to as "collateral" is considered a pledge and belongs to its owner. It must be zakatable every time a Hijri year passes over it, as it is part of his wealth. The zakat should not be given to a single person; rather, it is better to distribute it among several individuals. It is not necessary to inform the poor person that what is given to him is zakat; rather, it should be concealed from him.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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