Minimum salary
No minimum
RAKBANK Islamic Term Investment Deposit
RAKBANK Islamic Term Investment Deposit is a Mudaraba deposit from AED 25,000 for 1, 3, 6 or 12 months, with profit declared and paid every quarter.
An existing account with RAK is required, such as RAKBANK Islamic Current Account.
At a glance
The RAKBANK Islamic Term Investment Deposit is a Sharia-compliant fixed-term deposit. You place AED 25,000 or more for 1, 3, 6 or 12 months, on your own or with a joint applicant. It works under Mudaraba. The bank invests your money in a shared pool, keeps an agreed share of the profit, and distributes the rest to depositors according to a weightage, which is the share of pool profit assigned to each kind of deposit. Profit is declared and credited every quarter, so you do not wait until maturity for it. The deposit renews automatically at the end of the term and comes with complimentary life takaful cover. You need an active RAKBANK transactional account first, such as the RAKBANK Islamic Current Account.
Who can open it
RAKBANK transactional account needed
It funds the deposit and receives the expected profit
Residents and non-residents
Individuals can apply singly or jointly
Fees and balance
Minimum deposit
AED 25,000
Profit
Profit is paid quarterly. Expected profit ranges from 0.05% to 0.60% depending on placement amount and tenure. Early redemption reduces the profit weightage by 50%.
Available deposit tenures
- 1 month
- 3 months
- 6 months
- 12 months
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
How your profit is worked out
There is no single rate for this deposit. The expected profit depends on how much you place and for how long, and under Mudaraba it is an expectation, not a promise. Profit is calculated on the average balance over the quarter and paid after the bank announces that quarter's profit. Two limits matter. A deposit of less than AED 25,000 does not take part in the Mudaraba pool, and no profit is paid on a deposit held for less than 1 month. If the pool makes a loss, depositors bear it in proportion to their share, unless the loss came from the bank's misconduct, negligence or breach of contract. For a deposit that sets its expected rate by tenure and pays upfront, see the Fawrun Term Deposit.
Benefits
Quarterly Profit Payouts
Profit is declared and credited every quarter
Automatic Rollover
The deposit renews automatically at the end of the term
Complimentary Takaful Cover
Free life takaful comes with 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 25,000.
Good to know
Good option for
Depositors with AED 25,000 or more who want a Sharia-compliant term deposit with profit arriving every quarter and not all at the end.
Consider another account if
You want your profit paid at the start, or you may need the money before the term ends, since early redemption halves the weightage used for your profit.
Redeeming before the term ends
If you take the deposit out early, the weightage used to work out your profit is cut by half, and it is applied to the nearest term the deposit has actually run. Closing during the 5 business days after opening means no profit is paid.
Frequently asked questions
Get answers to common questions about the RAKBANK Islamic Term Investment Deposit