Kuala Lumpur, May 16 – OCBC Al-Amin Bank Berhad (OCBC Al-Amin) has launched the Shariah-compliant version of OCBC Bank (Malaysia) Berhad’s popular high interest-bearing savings account OCBC 360. It is based on the Islamic banking principle of tawarruq.
OCBC 360-i is an innovative account that rewards customers with “bonus profit” on a monthly basis for performing one or more of three common types of transactions through the account. The “bonus profit” is potentially comparable to the Bank’s fixed deposit (FD) rate.
Apart from being Shariah-compliant, OCBC 360-i differs from the conventional OCBC 360 in that it involves a debit card rather than a credit card.
OCBC 360-i customers receive a bonus profit of 1.2% per annum per transaction type when they (i) deposit at least RM500, (ii) spend at least RM500 using their OCBC Al-Amin debit card or (iii) make at least three bill payments through OCBC Bank’s online banking services, JomPay or IBG, all in the same month using the newly-launched account.
They will receive the maximum profit rate reward of 4.1% p.a. – inclusive of the 0.5%p.a. base profit rate – when they perform all three transactions in the month.
The base profit rate applies to the entire account balance at the prevailing rate (“Board Rate”) and is computed daily and credited into OCBC 360-i at the end of the month. All rates are subject to change from time to time.
The bonus profit rate is applicable to average daily account balances of up to RM100,000 for the calendar month. Beyond this amount, customers will enjoy only the base rate of 0.5% p.a.
Transaction type and rates
Explaining how OCBC 360-i works, OCBC Al-Amin Chief Executive Officer Syed Abdull Aziz Syed Kechik said, like OCBC 360, it maps out an achievable path for customers to achieve market-beating profit rates.
“The profit rate varies according to the types of transactions made. This makes it easier for customers who are not exceedingly cash rich to still earn an attractive profit rate, by consolidating all banking transactions into one primary bank account.
“Paying utility bills online or making IBG payments, saving something each month and using debit cards for spending have all become commonplace in banking today. Customers can optimise the benefits of these activities – without being compelled to fulfil all three – to enjoy all or at least part of the bonus profit in store for them.
“They will continue to enjoy the benefits for future months only if the transactions for those months fulfil the same criteria.
“A simple way to ensure one does not lose out would be to place these transactions on recurring mode such as using it as a salary account, or to place standing instructions to transfer at least RM500 into OCBC 360-i for savings, place similar instructions for three bills or IBG payments and ensure recurring bills of at least RM500 are made to their debit cards. Many people out there are already doing this, but they are not reaping optimal rewards for doing so,” he said.
OCBC 360-i is open to Malaysian citizens, permanent residents and non-residents who are at least 18 years of age and who fulfil the requirements set out in the terms and conditions. They may open the account by bringing to any OCBC Bank or OCBC Al-Amin branch their Identity Card or Passport and a minimum initial deposit of RM500.