Which is better in Ramadan: paying Zakat in money or feeding the poor?

The obligatory Zakat (definition) is an act of worship that has a specific time, which is the passing of one Hijri year on the nisab (definition). It must be disbursed immediately when its due time arrives, and it is not permissible to delay it except for a legitimate Shar'i excuse. It is not permissible to wait for Ramadan (definition) to pay it, unless the wait is brief. Zakat, like other good deeds, is better performed in virtuous times. However, once Zakat becomes due, a person must disburse it and not delay it until Ramadan. But if the Zakat's hawl (one-year cycle) completes in Ramadan, then it should be disbursed in Ramadan.

As for voluntary charity (sadaqat al-tatawwu'), generosity, and giving money, food, and clothing, it is better in Ramadan than in other months. The Prophet, peace be upon him, was the most generous of people in Ramadan. Among the benefits derived from this hadith (definition) is the desirability of increasing generosity in Ramadan.

Feeding people has a great reward. Allah has mentioned that among the characteristics of the believers who earned Paradise is that they feed people. The Prophet, peace be upon him, also informed us that "Whoever feeds a fasting person will have a reward like theirs." The Salaf (pious predecessors) were keen on this, and many of them preferred feeding their brethren over giving charity to the needy.

Therefore, both giving monetary charity and feeding people have great merit, and one should be keen on both.