Shari’ah Banking

Unlike the traditional banking model, Shari’ah banking is a system based on the principles of Shari’ah law (the law adopted by Muslims predominantly) and guided by Islamic economic principles.

It does not recognise money as an asset in its current form and thus prohibits the paying or receiving of interest for the use of money. It also prohibits participation in speculative markets which is tantamount to gambling under Shari’ah Law and no investments or participation is allowed in prohibited industries like tobacco, alcohol, arms and weaponry.

Shari’ah banking is also asset-backed, which means that a transaction isn’t concluded unless there is a physical asset in the transaction. The asset is then sold to the client at a mark-up or alternatively, the client pays us for the use of that asset. Thus, Shari’ah Banking by its very nature is not specific to Muslims only.

Agnostic of religion, people from all walks of life can participate in Shari’ah Banking products and what attracts non-Muslims is the ethical component of the proposition which is the fact that money within the system will never be used for “sin” industries such as alcohol, tobacco, pornography as well as what can be considered unethical industries such as gambling, arms and weaponry.

  • Shari’ah Fixed Deposit

    How to qualify:

    • You can make a minimum investment of R2000
    • You are a South African citizen above the age of 16
    • You have a valid passport or permit

    Features and Benefits

    • Choose how long you want to invest: from 33 days to 5 years
    • The product is structured on the principle of Mudharaba (a profit sharing model).
    • Profit share and capital will only be paid out at maturity
    • Note that once you have invested your funds, you can’t add to your investment. If you have more money to invest you can always open another Shari’ah Fixed Deposit Account

    What it costs

    • No management fees
    • If you want to withdraw your funds early, an early withdrawal fee of R400 inclusive of VAT will be charged. This is based on the Shari’ah principle of Takharuj (the mutual termination of a contract)

    How to apply

    • Complete the form below
    • Visit your nearest branch

    What you’ll need

    • Your proof of identity
    • Your proof of residence



    The Shari’ah Fixed Deposit works on a system of weightage. This simply means, the longer you invest the higher your return, the shorter you invest, the lower your return. The weightages attached to your account is as follows:


    Weightage rate

    33 days to under 3 months


    3 months to under 6 months


    6 month to under 12 months


    12 months to under 18 months


    18 months to under 24 months


    24 months to under 36 months


    36 months to under 48 months


    48 months to 60 months




    Profit Rate

    33 days to under 3 months


    3 months to under 6 months


    6 month to under 12 months


    12 months to under 18 months


    18 months to under 24 months


    24 months to under 36 months


    36 months to under 48 months


    48 months to 60 months


    *Please note that the weightage rate and profit sharing rate has already been included in the indicative profit rates displayed above.

  • Shari’ah Advisory Committee (SAC)

    Shari’ah Advisory Committee (SAC)

    All Standard Bank Shari’ah products are approved by our independent SAC. The scholars that make up our SAC are as follows:

    • Mufti Tauha Karaan
    • Mufti Zaid Haspatel
    • Mufti Muhammad Aamir Abdullah
  • Shari’ah Compliance Certificates

  • FAQ

    What is a Shari’ah Fixed Deposit?

    The Shari’ah Fixed Deposit is an investment offering that allows the client to invest his/ her fund according to the tenets of the Shari’ah.

    This product works in almost the identical way to a normal Fixed Deposit account; a lump sum will be invested for a fixed period of time, ranging from (33 days to 5 years. The client does not receive interest as their return but rather profit.

    Can non-Muslim customers invest using the Shari’ah Fixed Deposit?

    Yes, this product is for ALL clients and not only Muslims. Non-Muslim clients may take up the product due to its ethical nature in so far as the funds will not be utilised to fund any “sin industry” transaction such as tobacco, alcohol, gambling, etc.

    What does SAC stand for?

    Shari’ah Advisory Committee. (In other circles it is also known as Shari’ah Board)

    Is there an early redemption on the product?

    There is an early redemption option in the case where a customer wants access to their funds before the maturity period is reached. (Please note that there is an early redemption fee of R400 (new rates applied). The early redemption fee can be waived with valid reasons i.e. Death, going on pilgrimage (Hajj or Umrah)

    What is meant by the terms Pilgrimage (Hajj and Umrah)?

    • Pilgrimage - A journey to a holy /sacred/ special or unusual place.
    • Hajj- is an annual Islamic pilgrimage to Mecca and its surroundings, and a mandatory religious duty for Muslims that must be carried out at least once in their lifetime by all adult Muslims who are physically and financially capable of undertaking the journey
    • Umrah - is a pilgrimage to Mecca, Saudi Arabia, performed by Muslims that can be undertaken at any time of the year, in contrast to the Hajj. In Arabic, Umrah means "to visit a populated place".

    Is there a Service Fee charged on the product?


    Who can we contact in need of assistance?

    Should you have any queries around the product offering or require further clarity, please contact

    How do we know that the product is Shari’ah compliant?

    Standard Bank utilises the services of internationally reputable Scholars that audit the Shari’ah Banking activities of Standard Bank. These scholars provide us with a Certificate of Shari’ah Compliance after testing the product end to end, before we market our products as Shari’ah Compliant. Such Certificate can be made available upon request.

    Who are the scholars on Standard Bank’s Shari’ah Advisory Committee / Shari’ah Board?

    Chairman – Mufti Tauha Karaan
    Member – Mufti Zaid Haspatel
    Member – Mufti Mohammad Aamir Abdullah

    What makes the product Shari’ah compliant?

    The funds that we receive from depositors accounts do not form part of the banks traditional funding activities. The Shari’ah business unit ensures that depositor’s funds are placed in Shari’ah compliant Assets that have been certified by our SAC. We also ensure that we do not invest these funds into any sin industry, unethical business and interest bearing instruments.

    If I earn profit instead of interest, does it mean I am taxed differently on the returns?

    Standard Bank’s Shari’ah Fixed Deposit product is structured on the Shari’ah concept of Mudharaba. In terms of Section 24J(A) of the Income Tax Act, all returns that are received from a Mudharaba product are deemed to be interest for income tax purposes. Your returns will be reflected on an IT3B from Standard Bank.

    Is the return I will receive market related?

    The global Shari’ah Banking and Finance industry is a nascent one and as a result, there are limited Shari’ah Compliant Assets within the South African environment that we can invest in, hence, there is a possibility that the return on the Shari’ah Fixed Deposit will be marginally less than a conventional Fixed Deposit. We continue striving to develop bespoke Shari’ah compliant assets that yield a return on par with conventional banking assets.

    Will there be more Shari’ah Compliant offerings from Standard Bank?

    Yes. We have embarked on a journey to bring our clients a full suite of Shari’ah Compliant products which will be rolled out in phases.

    Is the product only available to personal clients? Is there no product available for business?

    At present, phase 1 of our launch is to personal clients. The product will definitely be made available to our valued business clients in the near future.

    Can Non-Muslim Consultants sell a Shari’ah Compliant product? Or a conventional bank for that matter?

    Yes. There is nothing that prevents any of our staff members from selling this product. Shari’ah Law does not require that a seller of a product or service be Muslim.

    Are we not earning interest and merely calling it profit?
    No, the structure of Shari’ah products do not transfer risk but rather share risk. As a result of us participating in the risk of the transaction, we earn a profit. This is based on the Quranic verse “And we have made Halaal trading”.

    Is there a specific business unit in Standard Bank that looks after the Shari’ah Banking Activities? If so, was the capital for the setting up of this business unit sourced from Shari’ah Compliant funds?

    Yes, there is a specific Shari’ah Business Unit within Standard Bank with dedicated personnel that are subject matter experts. Capital for the Shari’ah Banking Unit is sourced in a Shari’ah compliant manner and utilised in a Shari’ah Compliant manner, all of which is audited by the SAC.

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