If you are looking for an Islamic deposit account that will provide attractive returns in a Sharia'h Compliant manner, then our Term Investment Account is the one for you. We develop our investment offerings by understanding your needs and adhering to the principles of Sharia'h.
Term Investment 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 a Term Investment Account is based?
Term Investment 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 the fund provider.
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Who is Mudareb?
The "bank" is called Mudareb or fund manager.
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What is Mudareb 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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What is the initial deposit required for opening a term investment account?
AED 10,000/-
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Can customer avail a debit card?
Yes. A Visa Debit card will be issued for the corresponding current or savings account.
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What is required to open Term investment account?
Customer needs to open a current or savings account.
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State the different currencies in which Term Investment Account can be offered?
UAE Dirham and US Dollar
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What are the term periods for which a Term Investment Account can be booked?
1, 3, 6, 9 and 12 months
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What is the minimum period required to be eligible for profit payment?
Customer needs to complete at least 1 month to be eligible for the profit payout. E.g. a 3 month term deposit is withdrawn prematurely within 25 days will not be eligible for the profit pay out.
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When will the profit be distributed?
Profit will be distributed in current or savings account on quarterly basis, as highlighted by the customer.
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What will be the profit rate?
As disclosed by the bank on quarterly basis
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How will the profit rate be disclosed?
Profit rates for Term deposit and savings account are announced on quarterly basis. These will be displayed in branches as well as on the website.
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Is partial withdrawal possible?
No.
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Can a Term Deposit be withdrawn prematurely?
Yes. If the customer decides to withdraw his balance in the investment account before maturity and he received profits for past distribution terms as per contractual maturity, then the bank has the right to adjust the profits of such customers. In premature withdrawal case, profit rate for the last completed period will be applied. E.g. 1 year term deposit is withdrawn prematurely after 7 months. In this case profit rate for 6 month term deposit (last completed period) will be applied.
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Where would you find the previous quarter's profit rates?
You can access the profit rates for the previous quarters on Mashreq Al Islami website.
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What are the credit facilities a customer can get against Term Deposit?
Not applicable. There is no credit facility (overdraft) against term deposit.
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What is the renewal procedure for an FD?
It will be renewed automatically on due date if the customer has provided instructions on the application.
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