What is this product about?
UOB Islamic Fixed Deposit-i is a Shariah compliant fixed deposit account that is based on the concept of Tawarruq/Commodity Murabahah, i.e. two sale and purchase contracts.
Theoretically speaking, the bank will purchase a commodity from a seller on a deferred basis (a.k.a pay at a later date), which subsequently will sell the commodity to you on spot basis at marked up rate.
For a 1-month placement, you need to deposit a minimum of RM5,000, whereas for tenures of 2 months and above, you will need to deposit RM1,000.
What type of return am I getting from this Islamic fixed deposit?
The returns on this Shariah compliant fixed deposit is fixed throughout the tenure of placement. For example, if you choose to place a principal of RM500 for 3 months, you will earn the contracted profit rate for that tenure.
There are two options of profit payment you can select, which is either via cash upfront or upon maturity on monthly, quarterly, half-yearly or yearly basis.
Can I transfer fund from conventional account to Islamic fixed deposit account?
UOB allows for you to transfer your fund from conventional account, whether it is from current or savings account, to be placed as your Islamic fixed deposit.
Is it possible to withdraw cash before maturity?
You are allowed to make full or partial withdrawal before the maturity date, however, subject to UOB's verification and terms and conditions. Upon approval of your withdrawal request, you are required to waive your rights to claim full profit rate and grant the bank Ibra' (rebate) for any premature withdrawals.
Is my money protected by PIDM?
Of course it is! Deposits of up to RM250,000 will be insured by PIDM - don't worry!
What documents do I need to apply for UOB Fixed Deposit-i?
First, you must be 18 years old and above before you can open an Islamic fixed deposit account with UOB. You will need the documents as follows:
- NRIC (for Malaysians) / Passport (for Foreigners)
- Letter of Employment or Student Permit / Pass (for Foreigners only)
- Utility bill (e.g. Water, Electricity, Telephone, Rent, Bank Statement etc) in your name and address.
Voila! Happy saving.