Open an account at Al Baraka Bank. As of 17.02.2025 you have access to bank account options. Simplify your finances by choosing the best account for your needs today.
Update 13.11.2024
Al Baraka Bank provides a range of accounts designed for different customer needs, from everyday transactions to secure, flexible savings. Options like the Classic, iStart, Pensioner, and Foreigner accounts focus on convenience and low fees, offering features such as contactless payments, broad ATM access, and free transactions at popular retail outlets. The Social Responsibility Card, tailored for charitable organizations, ensures secure, dignified fund usage for beneficiaries. Each account offers easy management through internet banking, real-time payments, and a loyalty program, accessible via Al Baraka’s mobile app and digital platforms, making banking simple and rewarding for all clients.
Types of Accounts Offered by Al Baraka Bank
Checking Accounts
Classic Account. The Al Baraka Classic Account is designed for convenient daily transactions with no monthly admin fee on active accounts. This account offers free point-of-sale transactions locally and internationally, cash deposits at major retail chains, and ATM access at VISA-branded ATMs worldwide. Customers can manage funds online, schedule payments, and access cashback rewards through the loyalty program. A minimum opening balance of R50 is required.
iStart Account. Geared toward younger customers, the iStart Account supports children and young adults up to age 21 in developing strong financial habits. This account offers no monthly fees, 3 free deposits up to R5,000 each, and 2 free ATM withdrawals per month. Internet banking and online fund management are also available. A minimum balance of R50 is required to open this account.
Pensioner Account. Exclusively for clients aged 60 and above, the Pensioner Account offers straightforward features for ease of use, including no monthly fees, free point-of-sale purchases, and two free ATM withdrawals per month. Online banking, future payment scheduling, and loyalty rewards are included. A minimum of R50 is needed to open the account.
Foreigner Account. Designed for foreign nationals residing in South Africa, the Foreigner Account provides access to essential banking services. This account includes free local point-of-sale transactions, cash deposit options at retail stores and ATMs, and ATM access at VISA-branded ATMs globally. Internet banking is available with no monthly fee for active accounts, and a minimum balance of R50 is required to open the account.
Specialized Account
Social Responsibility Card. This account is specifically designed for charitable organizations, replacing traditional grocery vouchers and offering beneficiaries safe, dignified financial assistance. The Social Responsibility Card allows transactions at select stores and prevents fund misuse by restricting access to non-shariah-compliant vendors and cash withdrawals. It does not include internet banking or secondary card options, with free banking and no monthly transaction fees. The account requires a minimum balance of R30.
Key Features
Accessibility for Daily Banking. Al Baraka Bank's transactional accounts provide seamless access through online banking, mobile apps, and ATMs, allowing users to manage daily transactions effortlessly.
No Fees on Local and International POS Transactions. All checking accounts feature free point-of-sale transactions within South Africa and internationally, giving clients cost-effective payment options.
Loyalty Program with Cashback Rewards. Customers earn cashback on purchases at specific partner stores, with each account providing access to Al Baraka’s loyalty rewards program, enhancing the value of everyday spending.
Contactless Payment Options. Accounts come with Tap Go-enabled debit cards, offering convenient, secure contactless transactions at supported retail points.
Real-Time Payments. The bank’s online banking platform supports real-time payment options, enabling fast access to transferred funds for urgent financial needs.
Wide ATM Access. Al Baraka account holders can access cash at over 25,000 saswitch ATMs nationwide and any VISA-branded ATM internationally, providing broad ATM availability.
Free Internet Banking. Al Baraka offers free Internet banking with no monthly subscription fees, allowing clients to perform transactions, access statements, and manage their accounts online at no additional cost.
Pros and Cons
Pros
No monthly fee for active accounts. Clients do not pay maintenance fees if the account is actively used, making these accounts advantageous for everyday use.
Loyalty program with cashback. Al Baraka offers cashback on purchases with partner merchants, allowing clients to earn returns on their spending, which is often not available with transactional accounts at other banks.
Access to an extensive ATM network. Clients can withdraw cash from over 25,000 saswitch ATMs nationwide and any VISA-branded ATMs worldwide.
Cons
Limited Branch Availability. Al Baraka Bank has branches in only three provinces, making in-person account openings less accessible for customers outside these regions who need to visit a branch to complete applications.
Restrictions on Social Responsibility Card Usage. The Social Responsibility Card limits spending to Shariah-compliant vendors and does not support Internet banking or cash withdrawals, which may restrict flexibility for beneficiaries.
ATM Fees for Withdrawals Outside Partner Networks. While Al Baraka offers broad ATM access through saswitch and VISA networks, customers may incur additional fees at non-partner ATMs, as no specific partner ATM networks offer free withdrawals.
How to Apply for Al Baraka Bank Account?
Online. Visit the Al Baraka Bank website, navigate to the "View All Accounts" section, and select the account type you wish to open. Complete the Contact Form with your full name, contact details, and preferred account type to request a callback from a bank representative. A consultant will contact you to assist with completing the application and setting up your account.
At the Bank’s Branch. Use the branch locator on the Al Baraka Bank website to find the nearest branch. Bring the required documents, including a South African ID or passport and proof of address (no older than 3 months). Visit the branch, inform a representative of your intent to open an account, and they will assist you in completing the application process.
By Phone. Contact Al Baraka Bank’s customer service at +27 860-225-786 to inquire about account setup. While full applications require in-person or online interaction, the call center can provide guidance on initial steps, and required documents, and direct you to the best application method based on your needs.
Requirements and Conditions
Requirements
Identification. A valid South African green bar-coded ID or Smart ID is required for South African citizens; foreign nationals need a passport and relevant permit (work, study, or refugee).
Proof of Address. Proof of residential address, no older than 3 months, is mandatory for all applicants. Acceptable documents include utility bills, bank statements, or a letter from a recognized authority.
Minimum Balance. To open an account, a minimum balance of R50 is required for personal transactional accounts.
Age. Applicants must meet age requirements for specific accounts, such as being over 60 for the Pensioner Account or under 21 for the iStart Account.
Conditions
Monthly Admin Fee. Active accounts have no monthly admin fee, while inactive accounts for six months or more incur a fee of R12 per month.
Free Local and International Purchases. No fees apply for point-of-sale purchases within South Africa and internationally, providing cost-effective transaction options.
Cash Deposits. Free cash deposits are available at major retail stores, including Checkers, Shoprite, and Pick n Pay. Deposits at ABSA ATMs incur a fee of R5.00 plus R1.20 per R100.
ATM Withdrawals. Two free cash withdrawals are allowed monthly at Al Baraka and saswitch ATMs, after which a fee applies based on the ATM used.
Real-Time Payments. Real-time payments through Internet banking are available for a fee of R45 per transaction, allowing urgent access to funds.
Loyalty Rewards. Transactional account holders can earn cashback rewards at participating stores, with specific percentage rates depending on the partner and spend.
ATM Fees for International Withdrawals. If you withdraw money from ATMs outside South Africa, Al Baraka charges R55 plus 2.50% of the amount. This fee is worth noting if you plan to travel or use the account internationally.
Things to Pay Attention to
Restrictions on Social Responsibility Card Usage. The Social Responsibility Card, meant for charitable purposes, restricts spending to Shariah-compliant vendors only and excludes Internet banking. Users need to ensure this account meets their specific needs before opening.
Accessibility to Branches and Services. Al Baraka Bank has branches in only three provinces within South Africa. This is important to consider, especially if you prefer an in-person account setup or require access to branch services for consultations.
Cashback Categories and Limitations. While Al Baraka’s loyalty program offers cashback, it’s essential to review the categories of partner stores and spending limits in each category to understand the potential cashback earnings. This is useful if you frequently spend at partner merchants.
Transaction Monitoring and Control. Al Baraka accounts allow you to monitor and control transactions through online banking and the mobile app. Setting up alerts and regularly checking your balance is helpful, particularly if you use the Social Responsibility Card to ensure funds are used appropriately.
Account Suitability Based on Usage Needs. Al Baraka offers different accounts for various customer categories (such as pensioners, foreign nationals, and youth). Review the specific benefits and restrictions of each account type to select the one that best matches your everyday or specific financial needs.
Shariah Compliance. Al Baraka accounts are structured to comply with Shariah principles, meaning that transactions do not involve earning or paying interest. If adherence to these principles is important to you, Al Baraka offers a suitable, ethical banking option.
Editorial Opinion
Al Baraka Bank’s accounts offer straightforward, Shariah-compliant options tailored to various customer needs, from youth and pensioners to foreign nationals and charitable organizations. With features such as no monthly fees for active accounts, cashback rewards through partner stores, and extensive ATM access via saswitch and VISA networks, Al Baraka provides accessible, cost-effective banking solutions. However, limited branch availability and additional fees for inactive accounts or international ATM withdrawals are factors to consider. Overall, Al Baraka Bank is well-suited for customers seeking interest-free, ethically compliant accounts with practical benefits and digital convenience, though potential users should assess account-specific limits and fees based on their unique banking habits.
Can I earn cashback on international purchases made with my Al Baraka debit card?
Yes, Al Baraka Bank's loyalty program allows cashback on qualifying purchases made at partner stores, including international ones if they fall under Shariah-compliant partner categories and meet the transaction conditions.
Are there any charges for SMS notifications on Al Baraka accounts?
SMS notifications for local transactions incur a charge of R0.85, while international SMS notifications cost R2.00 per message.
How frequently is the cashback reward credited to my account?
Cashback rewards from partner stores are credited to your Al Baraka Bank account by the 25th of the following month. You’ll receive a notification SMS to confirm the reward deposit.
Is there a fee for checking my balance at non-Al Baraka ATMs?
Yes, balance inquiries at non-Al Baraka ATMs incur a fee of R10.00, while balance checks at international ATMs cost R8.50 per inquiry.
What is the minimum deposit required to open a Social Responsibility Card account?
The minimum required balance for a Social Responsibility Card is R30, designed to assist charitable organizations in fund management while maintaining security and transaction control.
