We have Shari’ah compliant solutions that cater for your every need. Islamic banking is available to anyone who wants to bank differently, not only for members of the Muslim community who wish to operate financially in line with Shari’ah Law

Shari’ah compliant accounts

Learn more about our Shari’ah compliant products

Absa’s Islamic Banking is advised and guided by the independent Shari’ah Supervisory Board, a panel of experts in Shari’ah Law and its application in economics

Here’s what you need to know

  • Are the Islamic Banking products for Muslims only?

    Islamic banking is open to all members of the public including non-Muslims.

    Islamic Banking is an alternative to conventional banking that is available to anyone who seeks a different approach to financial services, not only for members of the Muslim community who wish to operate financially in line with Shari’ah Law.

  • How are the profits generated?

    Profit is calculated on the average daily balance.
    Capitalisation takes place on the 31 December of every year and the payment takes place on 25 January each year.

  • How and when are profits shared?

    The money you deposit into your Islamic savings account and Islamic TargetSave account is then invested in Shari’ah compliant financing and investments. The profits generated from these investments are shared with you. We aim to ensure that our profit rates are market competitive.

More about Shari'ah Compliant Banking

  • How can a conventional bank offer Islamic Banking services?

    1. Conventional banks can sell Shari’ah compliant products because Islamic law does not require that the seller of the product be Muslim or that its other services also be Islamic. It does require that the product or service be in compliance with Shari’ah guidelines.
    2. Absa Islamic Banking has not only developed Shari’ah compliant products but it has adopted an end to end Shari’ah process. All our products and detailed embedded processes are approved and certified by the Absa Islamic Banking independent Shari’ah Supervisory Board comprising of eminent scholars in the field of Islamic Banking:
    • Sheikh Tauha Karaan
    • Mufti Ashraf Qureishi
    • Dr Yunoos Osman
    • Dr Aznan bin Hasan
  • How can Absa Islamic Banking and its products be considered Islamic?

    Absa Islamic Banking has not only developed Shari’ah compliant products but it has adopted an end to end Shari’ah process. All our products and detailed embedded processes are approved and certified by the Absa Islamic Banking Shari’ah Supervisory Board, comprising of eminent scholars in the field of Islamic banking. The scholars are not employees of Absa Islamic Banking and are independent.

  • What constitutes Riba?

    Simply, riba is also interest. “Any loan that derives benefit”. It could be understood by the following example: If person A lends person B R10 000 and requires B to pay him R11 000 after four months, the additional R1000 is interest and impermissible.

    Note: Riba is a fundamental prohibition in terms of Islamic law.

  • Is my debit card for use in other countries?

    Your Absa Islamic Banking debit card can be used for transactions in SA and internationally wherever you see the Visa / Visa Electron or Maestro / MasterCard logos are displayed. The logo on your Debit Card will guide you on where your card may be used e.g. at retailers that accept MasterCard.

  • Is Absa Islamic Banking in line with international standards?

    Islamic Banking is relatively new in South Africa, but we have been making great efforts and have already received significant international recognition. We won the 2006 Shari’ah Deal of the Year for South Africa and the 2007 award for the best Islamic Offering from a Conventional Bank. Absa Islamic Banking has also achieved the award for the Best Islamic Bank in Africa for the year ending 2007 & 2008 and in 2009, 2010, 2011, 2012, 2013 and 2014 Islamic Banking won Best Islamic Bank in SA. Global Finance magazine analysts also awarded us the Best Islamic Bank in Africa and the Middle East (non GCC for 2009, 2010 and 2011).

    Voted Best Islamic Window in 2015 at Banker Africa awards.

  • Does the cheque account have an overdraft facility?

    No overdraft facility is available.

  • What happens if my cheque account is overdrawn?

    Interest is not charged on the account. However administrative fees for items such as returned cheques will be charged.

Specialised banking

Absa is dedicated to bringing you a product offering that is compliant with Shari’ah Law. Choose between our Islamic cheque accounts or the Islamic Youth account.

Swipe your card worldwide

Cheque debit card which can be used worldwide.

See international banking

Manage and track your account online

24-hour self-service access through Absa online, Cellphone banking and Telephone banking.

Absa online

Get rewarded for simply using your card

The rewards product has been approved by the Shari’ah Supervisory Board. You are also responsible for ensuring that the rewards are used for purposes/ benefits which are permitted in Shari’ah.

See Absa Rewards

Islamic Cheque account

Whether you qualify for our Platinum, Gold or Flexi cheque account, we can provide you with a banking solution that’s perfect for you.

Apply now

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Islamic Youth account

The Islamic Youth account is our way of offering young people an innovative solution to a transactional and savings account. It’s the perfect way to become finance-savvy early on and to gain an edge.

Apply now

Apply now

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Shari'ah compliant vehicle finance

Islamic Vehicle Finance will ensure that you get the vehicle you want, whether it is for business or personal use, in a fully Shari'ah-compliant manner.

Apply now

How does it work

Using the concept of Ijaarah, which is similar to leasing, you can enjoy access to a vehicle for a fixed period and price. This approach is Shari'ah-compliant and allows you to benefit from the unique advantages as well, such as 100% financing and tax benefits.

Benefits of Shari’ah compliant vehicle finance:
  • Variable and fixed rental fees for the duration of the lease.
  • Flexible payment options that allow you to reduce your monthly rental fee when you have extra cash.
  • At the end of the lease, you can choose to purchase the vehicle at an agreed price, nominate a third party to buy it or continue to use it at a reduced or null rental fee.
  • Access to a range of free services (mechanical and electrical assistance), home and roadside assistance (for breakdowns) and great deals on products and travel services.
Shari'ah compliance

Shari'ah Law governs the manner in which Muslim people conduct their lives, including banking. Islamic Banking is deduced from the Shari'ah Law; hence it differs from conventional banking and forbids the payment or earning of interest, among other requirements.

As an alternative financial system to conventional banking, each of the solutions within Absa Islamic Banking are managed and administered according to Shari’ah Law under the guidance of the Absa Shari’ah Supervisory Board – comprised of learned Muslim scholars.

This independent board specialises in Fiqh Almua’malat (Islamic Commercial Jurisprudence), directing, approving, reviewing, supervising and monitoring the activities of Absa Islamic Banking to ensure Shari'ah compliance.

For more information related to Islamic banking products please visit our homepage.

Travelling abroad

Shari’ah compliant foreign bank notes and cash passports

 

Absa’s a great travel companion! We make it simple to send money abroad and exchange foreign currency.

Here are some services you get

Foreign Banknotes
Foreign Banknotes
  • Foreign currency in major world’s currencies
  • Pay taxi fares or tips without queuing at Bureau de Change
  • Any unused foreign banknotes must be resold to Absa

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Cash Passports
Cash Passports
  • Preloaded with all or any four currencies on a single card
  • Valid ID or passport with air-ticket or e-ticket in your name to qualify

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Forex info
Forex info
  • Provide you with foreign exchange for overload travel
  • Legally required to cash in foreign exchange upon return to South Africa
  • Absa complies with South African exchange control regulations

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Shari’ah compliant saving and investing

Every person would like to be financially independent and this aspiration is within reach if you follow basic principles and stick to your plans.

Once you have established your financial goals, you can select a suitable means of achieving them.

Get an Islamic Term Deposit account
Get an Islamic Term Deposit account

Based on the Mudarabah principle, the Islamic Term Deposit is an investment account which is fully Shari'ah compliant.

This Shari'ah-compliant fixed deposit account offers a competitive return that will vary according to the investment period you select (30 days to 5 years) and renders a profit share on a minimum opening deposit of R1 000 with no hidden costs or monthly fees.

Apply now

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Our Islamic TargetSave account

A Savings account based on the Mudarabah principle.

Starting at a minimum of a R100 pm and fixed for the first six months, our Islamic TargetSave account is a great way to ensure you of annual profit share.

Apply now

Apply now

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A Shari’ah compliant Will

Islamic Law requires that the estate of a Muslim should be distributed according to the Islamic Law of Succession, the detail of which can be found in the Qur’aan in chapter four.

It is a religious obligation for all Muslims living in South Africa to have a Will that conforms to Islamic Law, as the estate of anyone passing away without a valid Will is handled according to the South African Intestate Succession Laws, which contradict Shari'ah.

Benefits and how to get it

Benefits
  • Designed according to the principles of the Shari’ah
  • It is valid legal Will in terms of the Intestate Succession Act. This act deals with the distribution of ones estate in terms of the laws of the country in the event there is no Will
  • Safe custody for your convenience

*Terms and Conditions apply

Qualifying criteria
  • Single
  • Married out of community of property without accrual
  • Married according to Islamic Law
What it costs
  • The cost of drawing up an Islamic Will is R342
  • Executor’s fees: 3.5% + VAT of the gross asset value
  • If the client chooses the safe custody option where Absa Trust will keep the Will in safe custody for an annual fee of R60 then the client is entitled to a 15% discount of the executor’s fees
  • If the client is 60 years old and above, with assets to the value of R300 000 or more than too these services are free

You can also get an overview of all our products here.

Compare accounts

Need more help?

Let one of our consultants help you with your Islamic banking enquiries.

Call us on:

0860 000 786

E-mail us at:

islamicbanking@absa.co.za

Visit your nearest branch