The Mudarabah Fixed Time Investment Account is a Sharia-compliant investment product that allows depositors to invest their funds for a predetermined period in exchange for a fixed profit-sharing ratio. This account is designed for individuals and entities looking for a structured investment option with set terms.
Product Features:
- The account is opened for a specified term, during which the profit-sharing margin is determined based on the length of the term and the deposit amount.
- Once agreed upon, the profit rate remains fixed throughout the contract duration.
- Depositors do not participate in the management of the investment funds.
Deposit Duration Options:
- Short Term Deposit: Up to 6 months.
- Medium-Term Deposit: Up to 1 year.
- Long-Term Deposit: 1 to 2 years.
Minimum Deposit Amounts:
- Short-term: Birr 50,000
- Medium-term: Birr 100,000
- Long-term: Birr 100,000
Instalments Deposits: Deposits can be made in instalment:
- 3 monthly deposits for a 6-month investment period.
- 6 monthly deposits for a 12-month investment period.
- 12 monthly deposits or 4 quarterly deposits for a 24-month investment period.
Withdrawals are not permitted within the first 90 days but may be allowed under specific conditions:
- Up to 15% of total deposits during a 6-month term.
- Up to 25% of total deposits during a 12-month term.
- Up to 35% of total deposits during a 24-month term.
- The account balance must not fall below the minimum threshold at any time.
- Upon acceptance of the deposit, a certificate is issued to the depositor, detailing the deposit and agreement specifics. The Branch Manager or assistant signs the certificate.
- At maturity, the original investment plus any earned profit will be paid to the depositor upon presentation of the original certificate.
- If the depositor does not claim their funds at maturity, the amount will be transferred to a blocked account based on customer instructions.
- Fixed Time Mudarabah Deposits can be renewed for another similar period after maturity, subject to branch approval.
- The Terms and Tariff manual outlines profit rates for different tiers of fixed time deposits and rules regarding early withdrawals.
- The Terms and Tariff manual outlines profit rates for different tiers of fixed time deposits and rules regarding early withdrawals.
Eligibility Criteria:
- Legal persons including sole proprietors, micro, small, and medium enterprises (MSMEs), corporations, associations, partnerships, etc.
- All required documents outlined in the bank’s retail banking operation procedures must be provided to open this type of account.
