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INDIVIDUAL DEPOSITS

TERM DEPOSTIS Mudaraba Basis: Al-Yameen Islamic bank bank ©

Certificate of Yameen Islamic Investment


Halal and Absolutely High profit in a shariah compliant way!
Which you can secure your future.
The Certificate of Al-Yameen Islamic Investment is a Mudarabah-based deposit product through
which you can invest your savings for periods ranging from 3 months to 5 years and earn Halal profit
on a periodic basis.

Key Features
Investment Periods

Investment can be made for 3 months, 6 months, 1 year, 2 years, 3 years and 5 years

Profit Payments

Profit payment options are monthly, quarterly or at maturity

Minimum Investment

Quarterly and on-maturity payment = Rs. 50,000/


Monthly profit payment = Rs. 200,000/ Or more.

Pre Mature Withdrawal

Pre-mature withdrawal can be made as per approved schedule

Other Feature

 Free ATM/Debit Card with unlimited access to ATMs nationwide.

 Additional benefits such as e-Statement, 24/7 Phone Banking, SMS Banking

 Eligibility criteria

 Individuals (18 years & above) . Partnerships


 Companies .Companies Clubs / Societies / Associations / Trusts
How the Certificate of Islamic Investment Works?

Profit Sharing and Distribution Method

The Gross income of the deposit pool is distributed among the bank (Mudarib) and customers (Rab
ul Maal) on the basis of a pre-determined profit sharing ratio and weightages which shall be
announced 3 days before beginning of every month and shall not be changed during the month.
According to the spirit of Mudarbah, the profit rates are calculated and announced up to seven days
of the subsequent month from the monthly income of the trade activities of the pool. Conversely, in
case of the loss as per the rule of Mudarbah, the Rab ul Maal shall bear the loss in the ratio of their
investment.

Profit Sharing Ratio

Bank will share 50/50% of Distributable Income as Mudaib Depositor will Rab-ul-Maal or 60:40

Weightages for the Month of …………..

Account Categories Profit Distribution Periods/Tier groups Weightage Assigned

Certificate of Islamic Investment - 5 year Maturity 1.56


Profit Rates

Profit Rates for the Month of ………………...


Certificate of Islamic Investment

Tenures Profit Rates at Maturity Quarterly Rates

Five Year 5.58% 5.54% 5.1% monthly

Example 1 : Mr. Azlan has deposit his halal income in an Islamic


bank PKR 200,000/- as a Term Deposit Certificate of in Yameen Islamic Investment
in Al-Yameen Bank, Profit rate at maturity is 5.58% (Expected), and keep it there for 5
years. At the end of 5years, the amount of rate accumulated is determined as:

Formula: SP = P0 (Pr) (n)

Where: sp = simple profit, P0=principal amount, n = number of years, and Pr=profit Rates%

SP= 200,000(0.0558) (5) = 55800

Future value: we add the simple profit earned on the principal amount.

Fv = 200,000 +55800=255,800 /- (Expected) client receive at maturity.


Accounting Treatments Investment A/C

Certificate of Yameeen Islamic Investment Term Deposits

1.) Dr. Cash account PKR200,000


Cr. Equity of Unrestricted Mudharabah Investment account PKR 200,000
(Being deposit received from Rab al-mal/Capital Provider)
At maturity

2.) Dr. Equity of Unrestricted Mudharabah Investment account PKR 200,000


Cr. Cash account PKR 200,000
(Being deposit repaid to rab al-mal / capital provider)

3.) Dr. Proft and Loss account or Reserve account PKR 55800
Cr. Cash account PKR 55800
(Being proft disbursed to rab al-mal)

(OR)

Example (2): Illustration of Bilateral Mudharabah


If Capital Provider (A )provides 200,000/- to
Entrepreneur (B) and agreed on Profit Sharing Ratio

of 50:50 OR 60 : 40 respectively. Let say the profit from the


business venture is 60,000, (expected) then:
A will recover the initial of 200,000
capital and shares (60,000 x 0.5) 30,000 profit OR (3600) 60% A
B shares (60,000 x 0.5) 30,000 profit OR (2400) 30% B
If there is a loss bank (B) bear the loss ,if there is a negligence .
Source : Meezan bank
Weightages for the Month of February 2017
Account Categories Profit Distribution Periods/Tier groups Weightage Assigned

Term deposit Islamic investment - 5 year Monthly 1.54

= Quarterly 1.55

= Maturity 1.56

Source : Meezan bank


Profit Rates for the Month of January 2017
Certificate of Islamic Investment

Tenures Profit Rates at Maturity Quarterly Rates Monthly Rates

Three Year 5.40% 5.26% 5.08%

Five Year 5.54% 5.51%


5.58%

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