What is Zakat?
Zakat is the third pillar of Islam. Zakat becomes obligatory if the following two conditions are met:
1 – That it reaches the nisaab (minimum threshold)
2 – That one year has passed since it reaches the nisaab
If the money/assets’ value is less than the nisaab, then no zakaah is due on it.
Once the savings/assets reach the nisaab, and one year (lunar/hijri year) has passed since possession, then zakat becomes due at that point.