Enhanced Islamic Escalator Deposit

Enhanced Islamic Escalator Deposit

Term Investment Deposit

Currency

AED

USD

EUR

Minimum Balance - Personal Account

AED 100,000

USD 25,000

EUR 25,000

Minimum Balance - Commercial Account

AED 2,500,000

USD 500,000

EUR 500,000

Minimum Tenor

One Year

Maximum Tenor

Three Years

Expected Profit Rates

As per beside table

 

Profit Payments Date / Frequency

Every 6 Months (Semi-Annually)

Early Termination(Pre-Maturity Withdrawal)

Possible, following conditions apply:
  • No penalty; if cancelled on Profit Payment Date subject to complete one year of deposit placement.
  • 1% Penalty on the Profit Rate; If cancelled within the first year of deposit placement.

Finance Facility Against Deposit

Available

Agency Fee

The Wakala Fee will be as stated in the next table, depending on the tenor decided

Maturity Price/ Redemption price

100% of the initial deposit

Validity

Offer is valid until 31st January 2017

Expected Profit Rates Per Annum

Period

EIED (AED)Rates

EIED (USD)Rates

EIED (EUR)Rates

Agency Fee

1st six months

1.65%

1.00%

0.50%

0.05%

2nd six months

1.90%

1.25%

0.65%

3rd six months

2.25%

1.75%

0.85%

0.10%

4th six months

2.50%

2.00%

1.00%

5th six months

2.75%

2.25%

1.25%

0.20%

6th six months

3.00%

2.50%

1.75%

Main Features of the Product

  • Fully Shari’ah Compliant.
  • Structured under Islamic Wakala Investment Concept.
  • Investor is expected to receive attractive yields on a semi-annual basis.
  • In case of falling profit rates in market client will continue to enjoy the expected high profit rates.
  • Risk is always kept to the minimum.
  • Clients has the flexibility of withdrawal at each Profit Payment Date.

Q.1 : Under which Islamic Concept does this product fall?
Answer:Enhanced Islamic Escalator Deposit (EIED) is structured under Islamic Wakala Investment Concept by which the Bank (Wakkil) acts as an Agent on behalf of the Customer (Muwakkil) to invest in the Investment Amount (Deposit Amount) and returns with expected profits according to the tenor of the investment.

Q.2 Can I withdraw my deposit at anytime?
Answer:Yes, any deposit amount booked under the Enhanced Islamic Escalator Deposit can be withdrawn at anytime.
* Provided the outstanding amount should equal or be higher than the minimum amount required.
* Terminating the deposits before the Maturity Date is subject to a notice of at least two (2) UAE business days in writing,
* No penalty if deposit is cancelled on any Profit Payment Date after completing 12 months of deposit placement, otherwise applicable penalty will be 1% on the Profit Rate applied.

Q.3 Can I cancel and invest subsequently in this product again?
Answer: Yes, you can cancel at anytime subject to specified conditions, but reinvesting in the product would be subject to UAB offer at that time.

Q.4 How is the Agency Fee calculated?
Answer:A certain Agency Fee is applied for each period of investment and calculated as following:
Deposit amount x Agency Fee applicable on the decided investment period
(i.e. 1,000,000 * 0.05% = 500 if customer decided to invest for a maximum of 1 year)

Q.5 Is it possible to have this product in other currencies?
Answer:For this particular product we are offering rates in 3 currencies AED, USD & EUR.

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Islamic Flexi Term Deposit

Islamic Flexi Term Deposit

Term Investment Deposit

Currency

AED

Minimum Balance - Personal Account

AED 100,000

Minimum Balance - Commercial Account

AED 2,500,000

Minimum Tenor

1 Year

Maximum Tenor

2 Years

Expected Profit Rates

As per beside illustration

Profit Payments Date / Frequency

At the time of full withdrawal / Maturity

Early Termination(Pre-Maturity Withdrawal)

Possible
No penalty: on early withdrawal; Profit
paid on predefined rates

Finance Facility Against Deposit

Available

Validity

For funds “New to Bank” only; rates valid until 31st January 2017

Main Features of the Product

  • Fully Shari’ah Compliant
  • Structured under Islamic Wakala Investment Concept
  • One Year minimum maturity. Investor can choose the deposit tenor of 1 year or 2 years maturity
  • Investor will receive attractive rates on longer tenors, profit earned is paid on withdrawal date
  • Risk is reduced to a minimum
  • This deposit offers flexibility, transparency and expected higher profit rate compared to simple deposits

Q.1 : Under which Islamic Concept does this product fall?
Answer: Islamic Flexi Term Deposit (IFTD) is structured under Islamic Wakala Investment Concept by which the Bank (Wakkil) acts as an Agent on behalf of the Customer (Muwakkil) to invest in the Investment Amount (Deposit Amount) and returns with expected profits according to the tenor of the investment.

Q.2 Can I withdraw my deposit at anytime?
Answer: Yes, any deposit amount booked under the Islamic Flexi Term Deposit (IFTD) can be withdrawn at anytime.
* Redemption of the deposits before maturity is subject to a notice of at least two (2) UAE business days in writing.
* Zero profit is paid if deposit canceled before three months, otherwise applicable rate applied.

Q.3 How does the Profit computation in case of early termination?
Answer: This product is launched as a 1 or 2 Years deposit facility, offering transparency and flexibility.
* Anticipated Rates across the time buckets are predefined.
* No Penalty will be charged.

  • Example 1: If a customer decides to place AED 1,000,000 in a 2 years deposit @ 3.00% expected profit, customer at the end of 2 years may receive AED 1,060,000(1) . In case customer needs funds after 6 months, then Wakil incentive will be lowered pro-rata with the corresponding 6 months profit rate resulting in customer receiving a profit of 1.85% for 6 months i.e. AED 1,009,250(1) .
  • Example 2: If a customer decides to place AED 1,000,000 in a 2 years deposit @ 3.00% expected profit, customer at the end of 2 years may receive AED 1,060,000(1) . In case customer needs funds after 100 days (which is more than 3 months and less than 4 months), then Wakil incentive will be lowered pro-rata with the corresponding 3 months profit rate resulting in customer receiving a profit of 1.50% for 100 days.

Q.4 Is it possible to have this product in other currencies?
Answer:We are offering rates only in AED, for this particular product.

(1) Provided that the return on investment is equal to the expected profit rate or higher

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