Savings are one of the most important things you can do for your future. When you save with us, we ensure that your funds are invested wisely in Sharia'h Compliant business activities. Our Savings Account is structured on the Islamic principle of Mudarabah and has been specifically designed as a simple tool that allows you to get attractive returns on your savings while giving you access to conduct banking transactions.
Savings account works on the concept of Mudarabah (Fund management). Under the Mudarabah arrangement, depositor (Rab Al-Mal) authorizes the bank (Mudareb) to use it's expertise to ensure that customer funds, which are placed in a common Mudarabah pool, are invested in strict compliance with Sharia'h to generate the best possible returns.
What is the Sharia'h principle on which saving account is based upon?
Savings account is structured on the Sharia'h principle of "Mudarabah".
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What is Mudarabah?
Under the Mudarabah (Fund management) arrangement, depositor (Rab Al-Mal) authorizes the bank (Mudareb) to invest the deposit according to the unrestricted Mudarabah. Funds of the term investment and Savings accounts are invested according to unrestricted Mudarabah basis in the joint investing pool between the depositors and the shareholders and the realized profits from the joint investment pool are distributed between the depositors according to their respective shares in investment.
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Who is Rab al Mal?
Deposit holder is called Rab al Mal or fund provider.
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Who is Mudareb?
The "bank' is called Mudareb or fund manager.
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What is Mudareb's share?
Profit sharing is as per Mudarabah terms and conditions which may change from time to time.
Currently profit sharing is at 70-30%
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Who is eligible for opening a Savings account?
Individuals
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What is the initial deposit required for opening a savings account?
AED 3,000/-
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What is the minimum monthly balance required?
AED 3,000/- as a minimum monthly average
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What will happen if customer does not maintain minimum monthly balance of AED 3,000?
If the minimum monthly balance of customer's account will fall below the minimum balance requirement then the customer will pay the fall below fee.
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What is the fall below fee?
The fall below fee is AED 25/- per month.
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How many free teller transactions are allowed?
6 per month
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What will be the transaction charges for any extra teller transaction?
AED 10 per transaction
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Can customer avail an ATM card?
Yes, VISA Debit card will be issued
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State the different currencies in which savings account can be offered?
UAE Dirhams, US Dollar
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What will be the profit rate?
As disclosed by the bank on quarterly basis
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Where would you find the previous quarter's profit rates?
You can access the profit rates for the previous quarter on Mashreq Al Islami website.
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