Rationale For Zakat When Money Loses Value
I’m not sure what you mean by bank deposits losing value over 10% each year. If you’re referring to inflation then that goes for whether the money is deposited in the bank or not. Also inflation affects everyone and it doesn’t provide a rationale for not paying zakat. I’m also not sure what you mean by interest paid for partial compensation either. Zakat is a right of the state and an ibadah (worship ritual) for the rest of us. It must be paid without any hesitation according to the law of zakat. For details about the law of zakat, please see: Discussion 46733