Q: I was told by an alim-e-deen that I there is no zakah on money in the bank. Only on what i have cash with me. Can you explain?
Is zakah money investment and how do i pay zakah of it?
You would pay zakah on money you own and have control over while it remains in the bank for you the purposes of security.
You would not pay zakah on the interest money you have earned. The interest money you would give towards charity without the intention of reward. Allah (SWT) is Pure and He wants only that which is pure.
Hope I have eliminated your concern.
Allah Certainly Knows Best.