Is Zakat on money paid on the total amount deposited in the bank or on its returns, if the money was deposited in the bank after selling a house, with the aim of helping with living expenses and not because it was surplus to need?

Funds deposited in banks fall into two categories:

1. If in a usurious bank: Zakat (definition) is due only on the principal amount, not on the usurious interest, because it is illicit wealth that must be disposed of by spending it on charitable causes. This money must be withdrawn immediately. 2. If in an Islamic bank: Zakat is due on both the principal and the profit.

Zakat on wealth for previous years, which the deceased did not pay, must be discharged by reviewing the annual accounts: by deducting the usurious interest if the bank was usurious, or by including it if it was Islamic. If the wealth reached the nisab (definition), 2.5% is to be paid on it. The Zakat due before the death of the deceased is considered a debt owed by them and is taken from the inheritance before its distribution.