A new digital bank just entered Malaysia…
It’s Shariah-compliant, offers up to 5% Hibah per year, and is backed by big names.
Sounds amazing, right?
Well… not so fast.
Let’s talk honestly about KAF Digital Bank, what makes it different, where it disappoints, and whether it’s actually worth using in 2025.
What Is KAF Digital Bank?
KAF Digital Bank is Malaysia’s second Shariah-compliant digital bank, launching after AEON Bank.
It’s led by KAF Investment Bank and supported by well-known partners like:
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Carsome
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MoneyMatch
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RinggitPlus
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StoreHub
KAF received its Digital Bank license in late 2024, tested with pilot users in April 2025, and officially launched to the public on 8 August 2025.
Most importantly:
✅ Regulated by Bank Negara Malaysia
✅ Deposits protected by PIDM up to RM250,000
So yes — it’s a legitimate bank.
What Accounts Does KAF Offer?
Right now, KAF is still very new, so products are limited.
Savings Account-i (Qard)
This is their main product.
You can choose between two tiers:
1️⃣ Basic Plus
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RM5,000 per transaction
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RM20,000 monthly limit
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Free virtual debit card
2️⃣ Premium
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RM50,000 per transaction
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RM200,000 monthly limit
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Physical debit card included
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Annual card fee waived
Security is decent too — for DuitNow transfers above RM10,000, selfie verification is required.
🚫 Business accounts?
Not yet. Still “coming soon”.
The Big Attraction: 5% Hibah (But Read This Carefully)
This is where KAF gets attention.
From June to August 2025, KAF paid:
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5% per year on the first RM2,000
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3% per year on the remaining balance
BUT — and this is crucial:
⚠️ Hibah is NOT guaranteed
⚠️ It is discretionary
⚠️ Rates can change anytime
This is not interest.
This is not a fixed profit rate.
So if you’re expecting “locked-in 5% forever”… you’ll be disappointed.
Fees You MUST Know (Many People Miss This)
Opening an account is free, but here are the hidden realities:
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❌ Close your account within 3 months → RM20 fee
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❌ Dormant account (RM10+ balance) → RM10 yearly deduction
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❌ Hardcopy statement → RM10 + courier fee
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❌ ATM withdrawals → up to RM5
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❌ Overseas transactions → ~1.2%
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❌ Physical debit card → RM12/year (waived for Premium)
Nothing shocking — but you must read the fee schedule because KAF can change charges anytime.
App Experience: This Is Where Things Go Wrong 😐
Let’s be real.
The KAF app feels slow, laggy, and unfinished.
Some real issues:
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Frequent loading delays
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Actions not responding
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Transfers sometimes take days to reflect
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Screen recording disabled (yes, seriously)
Even after transferring RM10 to activate the account, approval can take up to a week.
For a digital bank in 2025… this experience feels outdated.
Virtual vs Physical Card Confusion
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Everyone gets a virtual debit card
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Physical card?
👉 You’ll likely need to upgrade to Premium
👉 Even then, the process is unclear
Not very user-friendly.
Is KAF Better Than AEON Bank?
Short answer: depends on what you want
KAF Pros
✅ Higher Hibah (up to 5% for RM2,000)
✅ Fully Shariah-compliant
✅ PIDM protected
KAF Cons
❌ Laggy app
❌ Limited features
❌ No cashback
❌ No financing yet
AEON Bank Advantages
🔥 4% cashback on groceries
🔥 Better app performance
🔥 Physical card ready
🔥 Personal Financing-i available
Personally?
👉 AEON Bank feels more complete right now
My Honest Verdict
KAF Digital Bank has potential, but it feels like a beta product.
If you:
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Want a Shariah-compliant savings option
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Only park a small amount
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Are okay with a basic app
Then KAF is… okay.
But if you want:
🚀 Growth
🚀 Flexibility
🚀 Better user experience
You should seriously look beyond just savings accounts.
Want Smarter Growth? Consider ETFs Instead 📈
Instead of chasing uncertain Hibah rates, many investors are moving into ETFs — diversified, transparent, and long-term friendly.
If you want to buy global ETFs easily, I personally recommend moomoo:
✅ Access US & global ETFs
✅ Low fees
✅ Powerful charts & data
✅ Beginner-friendly app
👉 Start investing in ETFs with moomoo here:
🔗 https://j.moomoo.com/0xFRE4
Long term, owning quality ETFs beats parking cash in most cases.
Final Thought
Digital banks come and go.
Hibah rates change.
But ownership of assets is what builds real wealth.
If you’ve tried KAF Digital Bank —
👉 comment your experience
👉 share this with friends who are comparing digital banks
👉 and start learning how to invest smarter, not just save.
See you in the next review. 🚀
