The dividend payout for the Islamic account is significantly lower than the conventional account.
Simpanan Shariah and Simpanan Konvensional are the two types of KWSP accounts. Deposits in an Islamic savings account are only invested in items that adhere to Islamic teachings, whereas traditional savings accounts invest in any item, including items that do not adhere to Islamic teachings, such as gambling, alcohol, gaming, and so on.
When the KWSP introduced the Islamic savings account, many Chinese transferred from the traditional account to the Islamic savings account, believing that the Islamic savings account would pay higher interest. The dividend payout of Islamic savings accounts is lower than that of conventional savings accounts as of 2021.
The Islamic savings account pays 6.40% of the provident fund dividend in 2017, while the traditional savings account pays 6.90%. In 2018, Islamic savings accounts paid 5.90%, while conventional savings accounts paid 6.15%. In 2019, Islamic savings accounts will earn 5.00%, while conventional savings accounts will earn 5.45%.
In 2020, Islamic savings accounts earn 4.90% compared to 5.20% for conventional savings accounts, and in 2021, Islamic savings accounts earn 5.65% compared to 6.10% for conventional savings accounts.
