What should I know about this investment account from Bank Muamalat?
The Fixed Term Account-i is an Islamic deposit account which follows the Shariah’s concept of Tawarruq. This means all profits are through investments, in which Bank Muamalat acts as your agent to buy and sell commodities, in accordance with Islamic principles of finance.
The commodity will then be sold to a third party for cash - a share of the profit will be determined for you by the bank upon making your FD placement. Your placements are flexible, allowing you to invest for up to 60 months, and choice of profit payment in advance, monthly, quarterly, semi-quarterly, semi-annually, annually or at maturity - phew!
Who can apply for this FD?
This Bank Muamalat Fixed Deposit plan is open to:
- All individuals above the age of 18.
- For children below 18 – their account has to be opened and managed by their parents or legal guardian.
- Businesses, associations, co-operatives and government bodies
What is the minimum deposit?
If you're interested in a one-month placement, a deposit of RM5,000 is required. Otherwise a minimum deposit of RM 1,000 is all that you need.
For corporate wholesale accounts, the minimum deposit is higher at RM100,000.
Can I make early withdrawals of my profit?
For 1-month tenures, no profit will be paid out for withdrawals before maturity. For 2 month tenures and above, you will get half of the profit based on the number of completed days.
Bear in mind that no partial withdrawals of your principal deposit are allowed – you can only withdraw the profit that you've earned so far.
Can I renew my Islamic investment account when it has matured?
Yes, Bank Muamalat provides auto renewals for all Fixed Term Account-i accounts upon maturity. You can choose to either renew your investment for the same tenure with the principal amount, or principal plus profit.