What is the ruling on the savings club practiced by employees, and is there zakah due on the money in it?
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The questioner : What is the ruling on a savings club, for example, where some people deduct a portion of their salary, and one person takes it every month?
The Shaykh : There is nothing wrong with it. A savings club means, for example, that these employees gather and say: We want to deduct one thousand riyals from each of our salaries, give it to the first person, then to the second person in the second month, and to the third person in the third month, until it goes around to all of them. This is permissible and there is no blame.
The questioner : Is there zakah on it?
The Shaykh : Yes, there is zakah on it if the debtor is wealthy.
The Shaykh : There is nothing wrong with it. A savings club means, for example, that these employees gather and say: We want to deduct one thousand riyals from each of our salaries, give it to the first person, then to the second person in the second month, and to the third person in the third month, until it goes around to all of them. This is permissible and there is no blame.
The questioner : Is there zakah on it?
The Shaykh : Yes, there is zakah on it if the debtor is wealthy.