Al Baraka Bank Al Baraka Regular Income Provider
Islamic Bank Accounts in Gauteng
A 12-month fixed investment designed to pay a monthly income from a lump sum. The business variant requires a minimum of R20,000 with additional deposits of R1,000 or more allowed at any time; profits are calculated from the bank's actual monthly financing results and paid monthly, either reinvested to compound the payout or transferred electronically to any account of your choice. The published rate for June 2026 was 5.396% per annum (May 2026: 5.396%). Personal and business versions are offered, and statements are available through the Al Baraka app.
This is the product that makes retirement work at an Islamic bank. Conventional pensioners live off interest-bearing income funds; the Regular Income Provider replaces that with a monthly Mudaraba distribution that averaged 5.396% annualised in mid-2026, paid to any account you nominate. The floating nature of the payout is a feature, not a bug: it is what keeps the income permissible, and Al Baraka's monthly rate publication means you can track exactly what the book is earning. Pair it with the free Pensioner Account and you have a complete riba-free retirement cash-flow system. The 12-month lock and absence of CODI cover are the prices of the structure; for its intended user it is the best-designed halal income product in the market.
Pros
- Solves the halal monthly income problem directly
- Top-ups allowed mid-term, unlike most fixed deposits
- Transparent realised-rate publication
- Higher payout than the bank's Haj and Monthly Investment products
Cons
- Not CODI-insured (Mudaraba capital not guaranteed at par)
- Monthly income floats with actual results rather than being fixed
- Capital locked for 12 months
- R20,000 entry is higher than the bank's other retail savings products
Open Account
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Product Details
Account Type
Monthly Income Investment
Monthly Fee
No account fee
Min Deposit
R20,000
Structure
Mudaraba profit share paid monthly; realised rate published monthly
Al Baraka Bank in Gauteng
Al Baraka Bank's Monthly Income Investment serves customers in Gauteng. Islamic savings products in South Africa pay declared Mudarabah profit rather than interest, with rates announced from actual pool performance. A monthly fee of No account fee applies. Qualifying deposits at registered banks are covered by the Corporation for Deposit Insurance (CODI) up to R100,000 per depositor per bank. Al Baraka Bank serves 3 provinces, including Gauteng.
Shariah Compliance & Oversight
Independent Shariah Supervisory Board named in the 2025 annual report and the annual Shariah report signed on 2 February 2026: Shaykh Mahomed Shoaib Omar (Chairman; a practising attorney admitted to the High and Constitutional Courts of South Africa, counsel in the landmark Amod v Road Accident Fund case, an expert in comparative jurisprudence who worked closely with the late Shaykh Abdus Sattar Abu Ghuddah), Shaykh Yousef Hasan Khalawi (Deputy Chairman), Mufti Zubair Bayat and Mufti Shafique Ahmed Jakhura. Al Baraka Bank is a member of AAOIFI and its products are reviewed against AAOIFI Shariah standards. The governance framework comprises Shariah Advisory, an internal Shariah Audit function, Al Baraka Group independent Shariah audit and the SSB, which publishes a signed annual Shariah compliance report.
2026-08-05
Why It's Halal
The Regular Income Provider shows how a Mudaraba can replicate the cash-flow pattern of an income fund without touching interest: the depositor's capital participates in Al Baraka's Murabaha, Musharaka and Ijarah financing book, and each month's distribution is that month's realised profit share, published openly and varying with actual results. Nothing is contractually guaranteed, which is precisely what keeps the monthly income halal, and the bank discloses that Mudaraba investment accounts sit outside CODI cover. The ability to sweep profit to any account, including a CODI-insured transactional account, lets a retiree keep the income halal end to end. Oversight is by the named four-scholar SSB under AAOIFI standards with a signed 2025 annual Shariah report.
Open Account: Al Baraka Bank
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NationwideFrequently Asked Questions
What is Al Baraka Bank Al Baraka Regular Income Provider?
Why is Al Baraka Bank Al Baraka Regular Income Provider considered halal?
Is Al Baraka Bank Al Baraka Regular Income Provider available in Gauteng?
What Shariah oversight does Al Baraka Bank have?
What financing structure does Al Baraka Bank Al Baraka Regular Income Provider use?
How do I apply for Al Baraka Bank Al Baraka Regular Income Provider in Gauteng?
Which Islamic finance providers have a physical presence in Gauteng?
Does Gauteng get the full product range?
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Important: HalalWallet provides general information and comparisons to help you explore halal financial options. HalalWallet, Inc is not a licensed financial services provider under the FAIS Act and is not registered with the FSCA or the SARB; nothing on this site is financial advice as defined by FAIS, and we do not provide legal or religious advice. Product structures and Shariah compliance oversight vary by provider. Always verify halal compliance directly with providers and consult with qualified Islamic finance advisors or scholars for guidance on specific products and your individual circumstances.