Kuwait Finance House Gold Investment

About Kuwait Finance House

Kuwait Finance House (KFH) was established in 1977 as the first Islamic Shariah-compliant bank globally. Kuwait Finance House (Malaysia) Berhad (KFH Malaysia) opened its first branch on August 8, 2005. Furthermore, KFH Bank provides a wide range of financial products and services to meet the needs and expectations of its potential clients. The KFH Group has 485 locations, 1,479 ATMs, and over 15,000 employees.

What is a Gold Investment Account (GIA)?

Gold investment allows individuals to buy gold without owning physical gold, and gold investments are ideal for those who want to diversify their portfolios. In Malaysia, only a few banks provide this service, but it is worth investigating if you have an extra source of income!

About KFH Gold-i investment account

  • KFH Gold-i investment account allows customers to make gold investments conveniently, secure, and affordable way, allowing customers a more significant capital gain from the appreciation in the gold price
  • KFH Gold-i investment account applied the Shariah Concept, such as Bai’ As-Sarf and Qardh

Why should I choose a KFH Gold-i investment account?

  • Withdraw the physical gold on the spot or have the bank retain the gold under the Qardh concept
  • No charges are imposed on safekeeping and withdrawal
  • An affordable initial investment for as low as 10 grams for individuals and 50 grams for non-individuals
  • The fineness of Gold 995

Who can open a KFH Gold-i investment account?

  • Individual account:

    Malaysian citizen, permanent resident or non-resident who are 18 years and above

  • Non-individual account:

    Associations, societies, companies, or other business entities that KFH Malaysia finds suitable or acceptable

What do I need to know before opening a KFH Gold-i investment?

  • Statement of account is made available every quarter
  • Physical gold deposited directly into the KFH Gold-i account is NOT allowed
  • Purchase of gold via cash is NOT allowed, and the money will be deposited into Savings or Current Account-i with KFH Malaysia

What are the risks of having a gold-i investment account?

  • Pricing risk

    The price of gold will be determined by the Bank at its sole and absolute discretion. It considers all relevant factors, including world market conditions, local currency exchange rates between USD and MYR, and fineness levels.

  • Market risk

    Your investment may be at risk if market conditions change. Although gold is considered one of the safest investments in the world, you’ll have no control over the profitability of your fund and could sustain losses as well!

  • Not protected by authorities

    Gold investment account is not covered by Perbadanan Insurans Deposit Malaysia (PIDM).

What is the minimum purchase for a KFH Gold-i investment account?

  • Minimum initial investment (purchase)
    • Individual/ joint: 10 grams and multiple of 1 gram
    • Non-individual: 50 grams and multiple of 1 gram
  • Minimum subsequent investment (purchase) / withdrawal (sale)
    • 1 gram and must be in multiples of 1 gram

What are the standard fees of a KFH Gold-i investment account?

There are no fees for the KFH Gold-i account.

What is the process of opening a KFH Gold-i investment account?

Open a KFH Gold-i account at the nearest Kuwait Finance House branches and the required documents are:

  • Individual: NRIC or passport
  • Non-individual: Business registration

What are the common terms of gold investment?

  • Minimum initial purchase

    The amount of gold you need to start an investment account. It depends on the bank and type, but it can be as little as 1 gram or more!

  • Minimum balance

    The minimum amount of gold needed to maintain your gold investment account.

  • Minimum subsequent purchase/ sale

    The minimum amount of gold you must involve in any transactions when buying or selling via your gold investment account.

  • Buy-sell spread

    The difference between a bank’s selling price and buying price for gold investments account. For example, you get gold at RM220, and the bank repurchases it at RM210. The buy-sell spread is RM10 (RM220 minus RM210).