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Unlock the potential of ethical investing with Wakala Deposits

Wakala Deposits provide a unique and ethical way to invest your funds while adhering to Shari’ah principles. This investment structure is based on an agency agreement, where your funds are managed on your behalf to generate potential profit. With the flexibility to renew deposits and the transparency of pre-agreed terms, Wakala Deposits offer a secure and responsible financial solution.

What are Wakala Deposits?

Wakala Deposits are structured under an agency contract where you (the principal) provide funds to an agent (the bank) to invest in Shari’ah -compliant opportunities. The bank manages these investments on your behalf and, upon maturity, pays you the realized profit. This arrangement can be based on a fixed fee or a combination of a fixed fee plus an incentive if the profit exceeds a pre-agreed benchmark.

Key features and benefits of Wakala Deposits

• Shari’ah -compliant investments - your funds are invested exclusively in Shari’ah -compliant businesses, ensuring ethical financial practices.
• Transparent profit structure - profit is shared based on pre-agreed terms, and if the profit exceeds the agreed benchmark, the bank may retain the excess as a performance incentive.
• Flexible renewals - you have the option to renew your Wakala Deposit automatically for the same or a new term at the prevailing expected profit rate on the maturity date.
• Secure and reliable - the principal amount is managed under clear terms, with transparent reporting and regular updates.
• Single or joint accounts - Wakala Deposits can be opened individually or as a joint account, providing flexibility to suit your financial needs.

How Wakala Deposits work?

• Investment process - when you open a Wakala Deposit, the bank acts as your agent, investing the capital in approved Shari’ah -compliant activities.
• Profit distribution - upon maturity, you receive the profit generated. If the returns exceed the agreed benchmark, the bank may keep the additional amount as a performance incentive.
• Automatic renewal option - if you choose, the Wakala Deposit can be renewed automatically. The new term will reflect the prevailing profit rate on the renewal date, not the original booking rate.
• Early withdrawal considerations - Pre-mature termination of a Wakala Deposit may result in a loss of expected profit, as the product is not eligible for guaranteed returns.

Important considerations for Wakala Deposits

• Cooling-Off period - for most financial products, you have a five-business-day cooling-off period. However, due to the immediate nature of Wakala investments, you may be required to waive this right when placing a Wakala Deposit.
• Currency conversion - If you need to convert your deposit to another currency, the applicable exchange rate on the transaction date will be used, subject to currency availability.
• Liability offset - any credit balance in your accounts may be used to offset outstanding liabilities or amounts due under the Wakala agreement.

Wakala Deposits provide a secure, ethical, and flexible way to grow your funds while ensuring compliance with Shari’ah principles. With clear terms, transparent profit-sharing, and the ability to renew your investment, they offer a reliable option for individuals seeking responsible financial solutions.

Explore the benefits of Wakala Deposits and take a step toward secure and ethical investing, Learn more.