Minimum salary
No minimum
RAKBANK Fawrun Term Deposit
RAKBANK Fawrun Term Deposit is a Sharia-compliant Wakala deposit from AED 15,000 that pays its expected profit upfront, on the day you place it.
An existing account with RAK is required, such as RAKBANK Islamic Current Account.
At a glance
Fawrun is a term deposit that pays you at the start and not at the end. You place AED 15,000 or more for a tenure, meaning the fixed period the money stays with the bank, from 1 month up to 36 months. On the day you place it, the bank pays the expected profit for the whole period. The deposit works under Wakala, a Sharia agency contract. You appoint the bank as your agent to invest the money, the bank tells you the profit rate it expects, and it earns an agency fee. You need a RAKBANK transactional account to fund the deposit and receive the money, for example the RAKBANK Islamic Current Account. Residents and non-residents can apply.
Who can open it
RAKBANK transactional account needed
It funds the deposit and receives the returns
Residents and non-residents
Open to individuals and businesses
Fees and balance
Minimum deposit
AED 15,000
Profit
Profit is paid upfront. Early redemption applies the expected profit rate prevailing at withdrawal less 1 percentage point. The minimum tenure is 1 month.
Available deposit tenures
Placement from AED 15,000 up to AED 10 million.
| Tenure | Annual rate |
|---|---|
| 1 to below 3 months | 3.88% |
| 3 to below 6 months | 4.23% |
| 6 to below 12 months | 4.43% |
| 12 to below 18 months | 4.94% |
| 18 to below 24 months | 4.94% |
| 24 months | 4.95% |
| 36 months | 5% |
| Tenure | Annual rate |
|---|---|
| 1 to below 3 months | 3.88% |
| 3 to below 6 months | 4.23% |
| 6 to below 12 months | 4.43% |
| 12 to below 18 months | 4.94% |
| 18 to below 24 months | 4.94% |
| 24 months | 4.95% |
| 36 months | 5% |
Expected annual profit rates
In plain words
- Profit rate
- An Islamic account does not pay interest. It pays you a share of what the bank earns on your money. The profit rate is that share as a yearly percentage of your balance. More on this
- Tenure
- The length of time you agree to leave the deposit in place. You choose it when you open the deposit, and the rate you get depends on the tenure you pick. More on this
- Paid upfront
- You receive the profit for the whole term on the day you place the deposit, not when the term ends. More on this
What your money earns here
Tenure
36 months
Placement from AED 15,000 up to AED 10 million.
Uses the expected profit rates. The amount and the rate stay the same for the whole period, and the profit is paid out, not added to the balance. Try other rates
AED 2,250
profit over 3 years
5%
a year
profit earned over time
Profit is the amount deposited, times the rate, for the number of days in the tenure out of 365, and all of it is paid when you place the deposit. The rate is expected and not guaranteed. Under Wakala, profit above the expected rate may be kept by the bank as a performance incentive, and a loss falls on the depositor unless the bank was negligent or broke the agreement.
Benefits
Upfront Profit Payout
Expected profit for the full tenure is paid on the day of placement
Early Redemption Allowed
The deposit can be redeemed before maturity at a reduced profit rate
AED and USD Deposits
The deposit can be placed in AED or USD
SMS Notifications
Text notifications on the deposit
Shariah-compliant
Banking model
How to open
Before you apply
1.An existing account with the bank is required.
2.No minimum salary.
3.Minimum deposit: AED 15,000.
Application steps
1.Hold an active RAKBANK transactional account. It funds the deposit and receives the returns.
2.Choose the amount, from AED 15,000, and a tenure from 1 month to 36 months.
3.Sign the application form and submit the required documents. The deposit opens within 1 business day.
Good to know
Good option for
Savers with AED 15,000 or more who want a Sharia-compliant deposit and would rather receive the profit now than wait for maturity.
Consider another account if
You are likely to need the money before the tenure ends, since profit already paid is taken back from the deposit. For savings with free access, see the RAKBANK Islamic Savings Account.
Taking the money out early
Early redemption is allowed, but because you were paid for the full tenure on day one, the bank takes some of that profit back. It works out the period still left to maturity and deducts the profit for that period from your deposit before releasing it. The profit you keep is then set at the expected profit rate in force on the day you withdraw, less one percentage point. If you close the deposit during the 5 business days after opening, no profit is paid.
Frequently asked questions
Get answers to common questions about the RAKBANK Fawrun Term Deposit