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Special Investment Account (SIA)/ General Investment Account (GIA)

 


 

Special Investment Account (SIA)

General Investment Account (GIA)

Definition

SIA/GIA:

Refers to a sum of money invested with the bank and profit is payable on every interim profit payment date/at maturity (where applicable). The amount of actual profit will only be known on maturity date based on prevailing gross return for the contracted profit sharing ratio.

Investment Account

An account under which money is paid and accepted for the purposes of investment, including for the provision of finance, in accordance with Shariah on terms that there is no express or implied obligation to repay the money in full and

  1. either only the profits, or both the profits of losses, thereon shall be shared between the person paying the money and the person accepting the money; or
  2. with or without any return.

Unrestricted Investment Account

A type of investment account where the investor authorize the Islamic Banking Institution to invest their funds in Shariah compliant assets without specifying any restrictions or conditions on the management of the funds.

Applicable Shariah concept

Mudarabah (Profit sharing)

A form of partnership between one who contributes capital (rabb al-mal/capital provider) and the other who contributes efforts in the form of managerial skills (mudarib/manager). Profit from the outcome of the partnership is shared between the capital provider and manager according to mutually agreed profit sharing ratio whilst losses are borne solely by the capital provider, provided such loss is not due to the manager’s negligence or violation of specified conditions.

Tanazul

Waiver of Right*

(*Revision of Terms and Conditions for Mudarabah-based Account

Effective 16th January 2012, all new accounts opened and existing accounts maintained under the contract Mudarabah shall be governed by the revised terms and conditions (T&C).

The accounts affected are as follows:

  • Mudarabah Savings Account-i

  • Wadi Savings Account-i

  • Ijraa Savings Account-i

  • Pewani Savings Account-i

  • Al-Awfar Savings Account-i

  • Al-Awfar Junior Savings Account-i

  • General Investment Account-i

  • Sakinah Investment Account-i

  • Al-Awfar Investment Account-i

  • Special Investment Account-i

The additional clause in the terms and conditions is:

“The customer shall agree upfront that their entitlement to the distributable income, if any, shall be equal to the expected profit. In the event the actual profit declared is higher than the expected used to calculate the dividend payment, the customer shall waive his/her right to claim the difference from the Bank. The Bank shall be entitled to such excess profit for its own account by way of incentive fees for acting as Mudharib.”

In relation to this, if no instruction is given to the Bank on or before the effective date, the existing accounts will be based on the revised terms and conditions.)

Profit Sharing Ratio Negotiable Click here for Profit Sharing Ratio and Indicative Rate
Minimum Amount RM500,000 RM500.00
Minimum Tenor 1 day 1 month

For more details, kindly refer to the respective product disclosure sheet.

Important notice: The contents of the above table, namely the details of Profit Sharing Ratio, Minimum Amount and Minimum Tenure are subject to change at the sole discretion of the Bank and customers should obtain confirmation from the Treasury Sales Team prior to making any decisions based on the above.

By making a request for the SIA or GIA, the investor understands the loss bearing or loss transfer feature of the Mudarabah contract and acknowledge that the Bank has legal recourse against the investor to enforce its rights.

This product will be insured under PIDM until no longer required by the relevant regulations. Please refer to Bank Islam for further information.

For further details, kindly contact our Treasury Sales Team at 03-2090 1710 / 1711.

Note : Information contained herein is accurate as of the time of publishing and subject to change in accordance with applicable rules, regulations or guidelines issued by Bank Negara Malaysia from time to time. All products offered by Bank Islam are subject to the Islamic Financial Services Act 2013 and any applicable laws derived therefrom.

 

Eligible for protection by PIDM

 
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