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Term Deposit-i (Tawarruq)


Introduction

Watch your money consistently grow through our Term Deposit-i (Tawarruq) [TDT-i]. A capital guaranteed deposit account that allows you the flexibility of managing funds according to your short or long-term needs.

TDT-i offers an attractive upfront profit rate and on maturity you will be able to earn the returns based on the upfront profit rate contracted at point of sale. Indeed a peace of mind knowing that your funds are reaping the attractive returns and capital guaranteed.

Come over to any Bank Islam branches to open a TDT-i account starting 30 April 2014.

Product Features

Age 18 years old & above
Who Can Apply / Eligibility Individuals

  • Resident
  • Non Resident

Non Individuals

  • Trustees
  • School/University
  • Club/Association
  • Society
  • Mosque/Religious Bodies
  • Sole Proprietorship
  • Partnership
  • Company
  • Cooperative
  • Government (Federal/Local/State)
  • Public Authorities
  • Others
Initial Deposit Minimum Deposit Placement

  • RM1,000 for 1 month
  • RM500 for 2 months & above

* No maximum deposit amount

Currency Ringgit Malaysia (RM)
Tenure
  • 1 – 60 months
  • Multiple of 1 month (starting from 1 – 12 months)
  • Multiple of 3 months (starting from 15 – 60 months)
Principal and Profit Guaranteed Yes
PIDM Insurable Yes (Up to RM250,000) ** Terms and conditions apply
Premature Withdrawal Allowed but profit is payable on the following conditions:

Deposit Tenure Rebate upon Pre-Mature Withdrawal*
3 months and below No profit
4 months and above (uncompleted tenure of 3 months) No profit
4 months and above (completed tenure of 3 months) Profit is payable at 50% of the original agreed profit

* The rebate may vary from time to time and subject to mutual agreement.

Note: For early withdrawal of the deposit, the Bank may also charge back to the Customer for any holding, handling and brokerage fees/charges actually charged by any third party commodity trader for sale and purchase of the commodity and to be deducted from the Sale Price (Murabahah).

Profit Payment Frequency
  • Upon maturity (tenure up to 1 year)
  • Half-yearly profit payment (tenure above 1 year)
Auto Renewal
  • Allowed for the same deposit amount and for the same tenure
  • Allowed for the deposit amount + profit and for the same tenure

Note: For auto-renewal of the deposit, the profit rate is to be based on the Bank’s prevailing profit rate at the point of renewal.

Brokerage Fee Absorbed by the Bank
Underlying Asset for Commodity Murabahah Transaction Metal (excluding gold and silver) or Crude Palm Oil (CPO) or other commodity as approved by Shariah.
Mode of Operation Certificate
Partial Withdrawal Not Allowed

Frequently Asked Questions (FAQs)

  1. What is Term Deposit-i (Tawarruq)/Term Deposit-i (Tawarruq) – Special? Term Deposit-i (Tawarruq)/Term Deposit-i (Tawarruq) - Special is a term deposit product with a fixed profit rate. The profit is derived from the commodity purchase and sale transactions based on the profit rate determined upfront.

  2. What is the Shariah concept applicable? The applicable Shariah concept is Tawarruq where the commodity is used as an underlying asset for the purchase and sale transactions between commodity trader(s), the Customer and the Bank.

  3. Who can open this account? Individuals (18 years and above) and non-individuals (Business, Corporate & others)

  4. Is joint account allowed? Yes, but only for individuals

  5. What is the minimum deposit amount required and what is the maximum deposit amount allowed?

    Minimum Deposit Placement
    • RM1,000 for 1 month and RM500 for 2 months and above
    • For Term Deposit-i (Tawarruq) – Special, it is negotiable
    Maximum Deposit Placement There is no maximum deposit amount

     

  6. What are the tenures available?

  • 1 month to 60 months
  • For Term Deposit-i (Tawarruq) – Special, it is negotiable
  1. Will Customers get a certificate? Yes, Customers will get Term Deposit-i (Tawarruq) certificate upon account opening/deposit placement.

  2. Can Customers make a partial withdrawal? No, Customers cannot make a partial withdrawal. Partial withdrawal is not allowed.

  3. Is pre-mature withdrawal allowed? Yes, pre-mature withdrawal is allowed, but profit is paid as follows:

    Deposit Tenure Rebate upon Pre-Mature Withdrawal*
    3 months and below No profit
    4 months and above (uncompleted tenure of 3 months) No profit
    4 months and above (completed tenure of 3 months) Profit is payable at 50% of the original agreed profit

    * The rebate may vary from time to time and subject to mutual agreement.

    Note: For early withdrawal of the deposit, the Bank may also charge back to the Customer for any holding, handling and brokerage fees/charges actually charged by any third party commodity trader for sale and purchase of the commodity and to be deducted from the Sale Price (Murabahah).

  4. Is renewal of the deposit allowed? Yes, renewal of the deposit is allowed. Customers may perform renewal of deposit amount only or deposit amount with profit amount.

  5. What is required for renewal of the deposit? Each renewal of the deposit will require a new commodity purchase and sale transaction (inclusive of auto renewal).

Terms and Conditions

DOWNLOAD HERE (.pdf) – Effective 1 April 2015

 

Eligible for protection by PIDM

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