Alliance Bank Updates Fees And Islamic Account Structure

Samuel Chua

14th October 2025 - 3 min read

Alliance Bank has updated the terms and conditions for its consumer deposit and debit card products, introducing clearer fees, new online services, and a profit-based structure for Islamic savings accounts from November 2025.

The revisions, which include changes to both the Terms and Conditions (T&C) and Product Disclosure Sheet (PDS) [PDF], aim to enhance transparency, customer protection, and digital accessibility across the bank’s retail offerings.

Islamic Savings Accounts To Move To Tawarruq Structure

Beginning 1 November 2025, all new Basic Savings Account-i products will operate under the Murabahah via Tawarruq concept, which allows customers to earn profit from trade-based transactions instead of interest, in line with Shariah principles. This replaces the existing qard structure, where deposits are treated as interest-free loans to the bank.

Under the new arrangement, deposits are treated as trade-based investments that can generate profit rather than non-profit-bearing balances. The change aligns with current Islamic banking practices and ensures full compliance with Shariah requirements.

Existing account holders will be informed before the transition takes effect.

Clearer Fee Structure For Transactions And Withdrawals

The revised documents outline standardised fees across various banking channels. Digital transactions such as Interbank GIRO (IBG) and Instant Transfers (IBFT) are capped at RM0.10 and RM0.50 respectively, while MEPS ATM withdrawals are set at RM1.00.

Over-the-counter services will cost RM2.00 per transaction, and the annual debit card fee is fixed at RM12. The updates are designed to help customers better understand applicable costs and compare digital versus branch banking options.

Online Access And Debit Card Applications Simplified

Customers who open accounts via electronic Know Your Customer (eKYC) verification can now apply for debit cards through the Allianceonline mobile app. This allows for a fully digital process, from account opening to card activation, without the need to visit a branch.

The changes reflect the bank’s ongoing push to expand digital banking access and streamline onboarding for new customers.

Dormant Account And Early Closure Policies

Accounts with no customer-initiated activity for 12 consecutive months may be classified as dormant. The bank may impose a maintenance charge or close such accounts after providing advance notice.

For Alliance My eSavings and eSavings-i accounts, customers are reminded that an early closure fee of RM10 applies if the account is terminated within three months of opening.

Fixed Deposit Certificate Replacement Process

For lost or damaged fixed deposit certificates, the updated terms clarify that customers will need to complete an indemnity form and pay the applicable stamp duty to obtain a replacement. This ensures a transparent and traceable process for certificate recovery.

Updated Complaint Channels For Consumers

The revised T&C and PDS also include updated contact information for Bank Negara Malaysia’s BNMLINK and the Financial Markets Ombudsman Service (FMOS). These details provide customers with formal channels to resolve disputes if issues remain unresolved with the bank.

Strengthening Transparency And Customer Protection

Overall, the updated terms modernise Alliance Bank’s deposit and debit card policies to ensure fairer disclosures, improved digital accessibility, and stronger protection for consumers.

The changes reflect broader trends in Malaysia’s banking industry, where institutions are updating their product frameworks to balance regulatory compliance, financial inclusion, and customer experience.

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