Wakala Deposit offers higher returns in Sharia'h Compliant manner. The bank in its capacity as an Agent has the responsibility to ensure funds are invested in Sharia'h Compliant goods and/or financial assets, yielding attractive returns for the customers.
Wakala Deposit product is a contract whereby the bank in its capacity as Agent, raises funds from its customers to invest these funds in a Sharia'h Compliant good and/or financial assets. The Wakil (bank) has a responsibility to ensure investing in assets yielding a return greater than as specified by the Principal. The rate that we offer to Wakala customers is the "expected/anticipated rates" and not "guaranteed rates" as these are based on the underlying earning assets performance.
What is the Sharia'h principle on which a Wakala Deposit is based?
"Wakala Deposit" is structured on the Sharia'h principle of "Wakala".
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What is Wakala?
Wakala is an agency contract. The concept ranges from brokerage services in permissible activities, to funds management (as an alternative to Mudarabah) and underwriting management in Islamic Insurance and serving as the Agent (Wakil). Wakala Deposit product is a contract whereby the bank in its capacity as Agent, raises funds from its customers to invest these funds in any Sharia'h Compliant good and/or financial assets. The Wakil (bank) has a responsibility to ensure investing in assets yielding a return greater than as specified by the Principal. That rate that we offer to Wakala customers is the "expected/anticipated rates" and not "guaranteed rates" as these are based on the underlying earning assets performance. The Agent receives a fee for undertaking the job of investing on the Principal's behalf.
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What is the initial deposit required for opening a Wakala Account?
AED 100,000/-
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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 Wakala Deposit Account?
Customer needs to open a current or savings account. Principle with profit will be transferred in current or savings account as instructed by the customer.
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Can a Wakala Deposit amount be subdivided in multiple Wakala Accounts?
One Wakala Account to have one rate.
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State the different currencies in which Wakala Deposit can be offered?
UAE Dirham and other major currencies.
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What are the Wakala periods for which a Wakala Deposit can be booked?
1, 3, 6, 9 and 12 months.
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When will profit be paid?
Profit will be paid upon maturity.
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What will be the profit rate?
Anticipated profit rate will be as per the Wakala contract.
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Is partial withdrawal possible?
No.
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Can a Wakala Deposit be withdrawn prematurely?
Yes. On early withdrawal of funds, due to breakage of any Wakala Deposit by the client, the applicable profit rate for the days funds have remained invested will be the relevant published Mashreq sheet rate applicable on the date the Wakala Deposit was made.
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What are the credit facilities a customer can get against Wakala Deposit?
Not applicable. There is no credit facility (overdraft) available against Wakala Deposit.
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Is there any specific document which has to be signed by customers?
Yes. Master Wakala agreement has to be completed for the first time with Wakala placement request. For any subsequent Wakala Deposit renewal and new placement only the "Wakala placement request" is required.
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What is the renewal procedure for a Wakala Deposit?
A new Wakala Account will be booked if customer will ask for renewal. Customer will need to provide "Wakala placement request" only.
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