Hajj Savings: Definition, Benefits, and How to Calculate Hajj Savings

Hajj is the fifth pillar of Islam, mandatory for Muslims who are physically and financially able. Therefore, it is highly encouraged for every Muslim to strive towards being able to perform Hajj to complete the five pillars of Islam. One way to do this is by saving up.

In Indonesia, there is a system called Hajj Savings, which is a savings account intended specifically to fund the pilgrimage. Opening this savings account is relatively easy. Let’s explore more below!

What Is Hajj Savings?

Hajj Savings is a savings account designed to cover the Cost of Organising the Hajj (BPIH). Opening this account is simple—you only need to provide an ID card (KTP) or driver’s license and make a minimum deposit according to the bank’s policy.

The average initial deposit at most banks is IDR 100,000, with subsequent minimum deposits also starting from IDR 100,000. However, to obtain a Hajj quota, you must make an initial deposit of at least IDR 25 million, which qualifies your name to be listed under the embarkation point or region of residence as a Hajj pilgrim candidate.

This registration is mandatory because Hajj quotas are limited, and waiting times can range between 5 to 15 years or more. That’s why starting a Hajj savings account while you are still young is strongly recommended.

In 2019, it was announced via official news channels that the estimated cost of Hajj was IDR 32.5 million, although this varies based on the departure embarkation point.

To prepare for this expense, many banks and financial institutions now offer dedicated Hajj savings products.

For example, if you save IDR 500,000 per month, in 5 years you will have saved IDR 30 million.

Once you accumulate IDR 25 million, your account will automatically be registered for a Hajj quota. The funds will be deposited into the account of the Hajj Financial Management Agency (BPKH) at the bank where the savings account was created. Afterwards, the bank teller (or an authorized officer) will process the submission manually.

Benefits of Having a Hajj Savings Account

There are many benefits to owning a Hajj savings account. The most important one is that it gives you the opportunity to perform Hajj using the savings you’ve accumulated.

Here are some key advantages you should know:

1. Your Money Is Safely Stored

Your savings will be placed in a Bank Receiving Hajj Payment Deposits (BPS BPIH). These banks are financially sound and carefully selected, ensuring the safety of your funds.

2. Difficult to Withdraw

One benefit of a Hajj savings account is that it’s not easily withdrawn, making it more effective and efficient for long-term saving. You are less tempted to spend the money unless it is truly for Hajj purposes.

3. Facilitates Hajj Registration

Once your savings reach IDR 25 million, the bank will notify you to register with the Ministry of Religious Affairs to obtain your official Hajj quota.

4. No Interest and No Admin Fees

Hajj savings accounts are Sharia-compliant, meaning they do not generate interest and charge no administrative fees. This ensures a halal and worry-free way to prepare for your pilgrimage.

5. Comes with Insurance Coverage

Many financial institutions now offer Hajj savings with life insurance coverage for the account holders. This provides extra peace of mind, allowing you to prepare for Hajj with added protection.

Example of Saving with a Hajj Account

A Hajj savings account works similarly to a regular savings account, but the purpose is specifically to fund your pilgrimage.

As with any bank account, you’ll go through the usual account opening process. The Ministry of Religious Affairs sets a balance requirement of IDR 25 million to be eligible for a Hajj quota.

Once you reach that amount, you and your bank will register your name as a prospective Hajj pilgrim.

After the registration is complete, you’ll be required to pay the remaining amount while waiting for your turn. On average, the total cost (BPIH) is above IDR 30 million.

So, if you’ve deposited IDR 25 million, you will still need to add approximately IDR 5 million more to complete the payment.

Only pilgrims who have fully paid their BPIH and have not canceled their registration are considered ready to depart.

If a registrant has not paid the remaining balance, they still hold their spot but may be deferred to the next year. In this case, a backup pilgrim may take their place if the original registrant fails to complete payment.

How to Calculate Hajj Savings

You will receive a Hajj queue number (nomor porsi) once your Hajj savings reach IDR 25 million.

Here’s an estimate of how long it would take to get a queue number, assuming you deposit monthly with an initial deposit of IDR 100,000:

• 1 year: save IDR 2,075,000/month
• 2 years: save IDR 1,037,500/month
• 3 years: save IDR 692,000/month
• 4 years: save IDR 519,000/month
• 5 years: save IDR 415,000/month
• 6 years: save IDR 346,000/month
• 7 years: save IDR 297,000/month
• 8 years: save IDR 260,000/month
• 9 years: save IDR 231,000/month
• 10 years: save IDR 207,500/month

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