Standard Bank's Shari'ah Fixed Deposit is a Mudarabah term deposit for lump sums from R1,000 over 33 days to five years, with no monthly fee and indicative profit rates, effective 2 October 2026, from 6.18% for the shortest term to 9.75% at maturity on a 60-month deposit of R10,000 to R99,999. The terms state a 50/50 profit split between you and the bank, profit calculated on the average daily balance and paid monthly, quarterly, half-yearly, annually or at maturity. Early exit is possible but carries a Takharuj charge, and the deposit is explicitly not covered by CODI. This review sets out the rate table, the contract, and where the product sits against FNB and Al Baraka.
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What the product is
Standard Bank runs Shari'ah banking as a window within the bank, certified by its own Shari'ah Advisory Committee. The personal Shari'ah Fixed Deposit is the flagship savings product in that window. You make a single deposit, choose a term, and the bank invests the money in Shari'ah-compliant financing and investments; the profit generated is shared with you under a Mudarabah, with Standard Bank as the Mudarib managing the capital. The product page says the longer you invest the higher your potential return, and that profit can be paid on a schedule you choose or rolled to maturity.
The published terms and conditions, which apply to the personal account, add the operational detail. The minimum opening deposit is R1,000. You must deposit within seven days of opening the account to receive the indicative rate or the account is closed. The term you choose must run its full course for the quoted profit to apply, and the profit rate applied is the indicative rate prevailing for Shari'ah personal fixed deposits for that term and balance on the day you invest. Our Standard Bank Shari'ah Banking review covers the rest of the window, including the current account and the business products.
The published rate table
Standard Bank publishes indicative profit rates in two balance bands, below R10,000 and R10,000 to R99,999, each with a monthly-payout rate and an at-maturity rate. The at-maturity figure is higher on every term beyond three months because the profit compounds inside the deposit rather than being paid out. The table reproduces the rates the bank shows as effective from 2 October 2026; balances of R100,000 and above are priced on application.
| Term | Below R10,000: monthly | Below R10,000: at maturity | R10,000 to R99,999: monthly | R10,000 to R99,999: at maturity |
|---|---|---|---|---|
| 33 days to under 3 months | 6.18% | 6.18% | 6.28% | 6.28% |
| 3 months to under 6 months | 6.34% | 6.37% | 6.44% | 6.47% |
| 6 months to under 12 months | 6.42% | 6.51% | 6.52% | 6.61% |
| 12 months to under 18 months | 6.90% | 7.12% | 7.00% | 7.23% |
| 18 months to under 24 months | 7.37% | 7.77% | 7.47% | 7.88% |
| 24 months to under 36 months | 7.43% | 7.98% | 7.53% | 8.10% |
| 36 months to under 48 months | 7.59% | 8.49% | 7.69% | 8.62% |
| 48 months to 60 months | 7.73% | 9.02% | 7.83% | 9.16% |
| 60 months | 7.87% | 9.61% | 7.97% | 9.75% |
Two patterns matter. The balance band adds a flat 0.10 percentage points at every term, so a R9,000 deposit and a R10,000 deposit are priced a tenth apart. The payout choice matters far more on long terms: at 60 months the gap between monthly and at-maturity is 1.78 points, because the at-maturity figure expresses five years of compounding as a simple annual rate. An investor comparing the 9.75% headline with another bank's monthly-payout rate is comparing different things; the like-for-like number is 7.97%.
The 50/50 Mudarabah split, and what it does and does not promise
Clause 6 of the terms is unusually direct for a South African bank. If the bank makes a profit using your capital, you receive 50% of the profit and the bank receives 50%. Profit is calculated on the average daily balance in the account. The bank applies weightages based on term and balance, so a longer term or a larger balance earns a higher weighting within the pool, which is how one 50/50 ratio produces the graduated table above. A published weightages document lists multipliers from 0.3066 for a seven-day fixed deposit up to 1.3655 for a five-year deposit in the highest balance column.
What the split does not promise is the rate. The terms say profit is quoted per annum, subject to the actual capital deposited and the term running its full course, and the product page calls every figure indicative. If the pool earns less than forecast, your share is 50% of a smaller number. Standard Bank's stated ratio is more generous to the depositor than Al Baraka's published 60/40 after the bank's capital share, and more transparent than FNB, which publishes indicative rates but not a ratio on its Islamic Fixed Deposit page. Our guide to Mudarabah deposit splits compares what each bank discloses.
Payout options and how profit is paid
You choose the payout frequency at a branch, on internet banking or in the app: monthly, quarterly, half-yearly, annually or at maturity. Monthly profit is paid out of the deposit into a nominated account, which makes the product usable as an income deposit for a retiree or a household supplementing salary; the trade-off is the lower monthly rate column. Choosing at maturity keeps the profit inside the deposit and earns the higher at-maturity figure. The terms require the chosen term to run its full course for the quoted profit to apply, so changing the payout schedule mid-term is not something to count on.
Early withdrawal: the Takharuj charge
A fixed deposit is fixed, and the Shari'ah version handles early exit differently from a conventional one. Rather than an interest penalty, the terms describe a Takharuj, an agreed exit from the Mudarabah partnership before the end of the term, for which the bank levies a charge and may re-rate the profit. The product page summarises this as early withdrawal fees apply. The practical effect is similar to a conventional early-withdrawal penalty: you can get your capital back, but you should expect to receive less profit than the indicative rate and to pay a charge. The terms do not publish a fixed percentage for the charge, so ask for it in writing before investing money you might need.
- Do not put emergency money in the fixed deposit; Standard Bank's own Shari'ah notice and call products, or Absa's Islamic Depositor Plus, are built for that.
- Ladder several deposits with different maturities instead of one large five-year deposit, so a cash need can be met by the next maturity rather than a Takharuj.
- Choose the term you are confident about rather than the term with the highest rate; the five-year at-maturity figure is only earned if the full five years run.
- Ask for the Takharuj charge and re-rating rule in writing at opening, since the public terms describe the mechanism but not the amount.
CODI: not covered, and why
Clause 3.5 of the terms states that Mudarabah products are not covered by the Corporation for Deposit Insurance. This is a feature of the contract, not an oversight: deposit insurance guarantees repayment of a debt, and a Mudarabah deposit is an investment whose capital is, in principle, at risk if the pool makes a loss. Standard Bank's conventional fixed deposit is covered; its Shari'ah fixed deposit is not. For most depositors the realistic risk is the bank's solvency rather than a loss in the financing pool, and Standard Bank is one of the largest banks in the country, but the legal difference is real and should shape how much you keep in one place. Our explainer on CODI and Islamic accounts sets out which products at each bank fall outside the scheme.
How it compares with FNB and Al Baraka
The two closest alternatives are FNB's Islamic Fixed Deposit and Al Baraka's Participation Account. The comparison uses each bank's published figures for a 12-month and a 24-month term and the smallest balance band the figures cover.
| Feature | Standard Bank Shari'ah FD | FNB Islamic Fixed Deposit | Al Baraka Participation Account |
|---|---|---|---|
| Minimum deposit | R1,000 | R10,000 | From R50,000 for 35 days; terms vary by product |
| Terms | 33 days to 5 years | 30 days to 60 months | 7, 35, 91, 182, 365 or 720 days |
| 12-month rate | 7.12% to 7.23% at maturity (below R100,000) | 7.05% nominal (R10,000 to R249,999) | 5.198% realised, August 2026 |
| 24-month rate | 7.98% to 8.10% at maturity | 7.15% nominal | 5.533% realised (720 days), August 2026 |
| Stated profit split | 50/50 in the terms | Not published on the product page | 60/40 to depositors after bank capital share |
| Rate type | Indicative | Indicative | Actual, published monthly |
| Monthly fee | None | None | Subject to Al Baraka banking fees on deposits and withdrawals |
| CODI cover | No (clause 3.5) | No (Mudarabah) | No (Mudarabah) |
On rate, Standard Bank leads FNB at 12 and 24 months for sub-R100,000 deposits and opens with a tenth of FNB's minimum. FNB pulls level or ahead for larger balances and on the shortest terms, and its notice account is the better home for cash that may be needed early. Al Baraka's realised rates are lower, in exchange for a fully Islamic counterparty and a published actual return rather than a forecast. The FNB Islamic Banking page and the Standard Bank Shari'ah page carry each product's current terms.
Verdict: who should use the Standard Bank Shari'ah Fixed Deposit
This is the best-documented Mudarabah deposit from a South African window bank. The stated 50/50 split, the published weightages, the explicit CODI clause and the full rate table in two balance bands give a depositor more to check than any competitor's page. For a saver with R1,000 to R99,999 and a horizon of a year or more, the at-maturity rates are the highest published among the window banks at the time of writing, and the R1,000 minimum makes it the only one of the three that a first-time saver can open.
It is the wrong product for money that might be needed before maturity, because the Takharuj charge is not published and the terms require the full term to run. It is also worth remembering that the 9.75% headline is a five-year at-maturity figure; the monthly-payout equivalent is 7.97%, and the one-year rate is around 7.2%. Price the term you will actually keep, ladder if the sum is large, and keep the balance in any one Mudarabah account within what you could afford to see delayed. Compare it with the shorter-dated options in our guide to halal short-term investments and the wider market in the Islamic fixed deposits comparison, or see every account on the bank accounts hub. Facts checked against standardbank.co.za, fnb.co.za and albaraka.co.za on 18 September 2026.
Frequently asked questions
What is the current rate on the Standard Bank Shari'ah Fixed Deposit?
Indicative rates effective 2 October 2026 run from 6.18% for 33 days to under three months on balances below R10,000, to 9.75% at maturity for a 60-month deposit of R10,000 to R99,999. The monthly-payout rate on the same five-year term is 7.97%. A 12-month deposit pays 7.12% to 7.23% at maturity depending on balance. Balances of R100,000 and above are priced on application.
What is the minimum deposit for the Shari'ah Fixed Deposit?
R1,000, according to clause 3.1 of the published terms and the product page. You must fund the account within seven days of opening to receive the indicative rate, or the account is closed. By comparison FNB's Islamic Fixed Deposit opens from R10,000, which makes Standard Bank the more accessible of the two window-bank products for a first-time saver.
How does the 50/50 profit split work?
Clause 6 of the terms states that if the bank makes a profit from its activities using your capital, you receive 50% and the bank receives 50%. Profit is calculated on your average daily balance and weighted by term and balance, so longer and larger deposits earn a larger share of the pool. The split is fixed; the amount of profit is not, which is why every published rate is called indicative.
Can I withdraw early from the Standard Bank Shari'ah Fixed Deposit?
Yes, but through a Takharuj, an agreed early exit from the Mudarabah, for which the bank levies a charge and may re-rate the profit you receive. The product page summarises this as early withdrawal fees apply, and the terms do not publish the amount. Ask for the charge in writing before investing, and use a notice or call account for money you may need before maturity.
Is the Standard Bank Shari'ah Fixed Deposit covered by CODI?
No. Clause 3.5 of the terms states that Mudarabah products are not covered by the Corporation for Deposit Insurance. Your deposit is an investment in the bank's Shari'ah-compliant financing pool rather than a guaranteed debt, so the deposit insurance that applies to Standard Bank's conventional fixed deposit does not apply here. The same is true of FNB's and Al Baraka's Mudarabah deposits.
Compare providers in your state
See side-by-side comparisons of Shariah-compliant products, or let our matcher recommend the best options for your situation.
Is the Standard Bank Shari'ah Fixed Deposit better than FNB's Islamic Fixed Deposit?
For deposits under R100,000 held for a year or longer, Standard Bank's published at-maturity rates are higher: 7.12% to 7.23% at 12 months against FNB's 7.05%, and 7.98% to 8.10% at 24 months against FNB's 7.15%. FNB is competitive on terms under a year and for balances above R500,000, and its minimum is R10,000 against Standard Bank's R1,000. Both are indicative Mudarabah rates and neither is CODI-covered.
