Saving Procedures: Tabung Haji

Knowing that in a competitive market efficient and fast services to the depositors play an important role in attracting deposits, it is the policy of Tabung Haji to simplify the savings procedures and to expand its retail collection network in the country to ensure easy accessibility to depositors. Also as in the case of withdrawals, Tabung Haji provide a level of withdrawal convenience comparable if not better than those of competing financial institutions. Membership of Tabung Haji is voluntary and limited to Malaysian citizens of Islamic faith only. However, no age limit is imposed. A person may save through any of the following means:

1. At any Tabung Haji’s more than 100 branch offices
2. At any post office throughout the country
3. Monthly pay deductions by their employers
4. Mailing their deposits direct to Th head office
5. Saving schemes for dependents

Till now, Th does not issue saving books to the depositors. Instead, it issues statement of accounts twice a year i.e. at the end of June and December as required by the Tabung Haji Act. The depositors are advised to check their transactions for that period through their statement of account. However, due to increasing requests from depositors, Th has very recently decided to issue savings books in future.

Prior to June 1997, Th used to allow a depositor to withdraw his/her saving once every 6 months. Later, from June 1997, the depositors can withdraw their savings for any purpose and of any amount up to even 100% of their balance. Cash withdrawal facilities up to RM10,000 (US$2,600) are allowed at any branch office. Th is currently looking at the possibility of also allowing withdrawals from Automatic Teller Machines (atm).

Withdrawal of deposits is motivated primarily by the need to incur pilgrimage expenses with a lesser proportion of withdrawals for other purposes. Th also provides withdrawal services for pilgrims while they are in the Holy Land performing the Hajj or umrah.

Source: Towards Islamic Banking: Experience and Challenges, Institute of Policy Studies. Republished with permission.