Islami Premium Saving Account

Islami Premium Saving Account is a general pool regular checking account which is targeted towards HNWI (High Net Worth Individuals), sole proprietors, traders, NGOs, business entities etc. It is a two-tiered account with no transaction limits and convenience of fund accessibility.

The Islami Premium Saving Account offers you the following salient key features:

• Initial deposit requirement 100,000/-
• Profit calculation on monthly average balance
• Profit payment monthly
• No restriction on number of withdrawals during a month
• No restriction on the number of deposit transactions during a month
• Personalized service from Personal Banker
• No restrictions on intercity transactions
• Free internet Banking service
• Round the clock phone Banking through 111-ISLAMI (475-264) 
• Free account statement facility
• Hold mail and Stop payment facility
• Safe deposit lockers (subject to availability)

Islami Premium Savings Account is a Mudarabah based account. This is how it works:

• You provide funds to the Bank on Mudarbah basis for investment in the Bank’s Shariah Compliant Assets
• In this arrangement you are the Rab-ul-Maal (owner of funds) and the Bank is the Mudarib (manager of the funds).
• The bank will form a pool of customers
• The pool provides financings to various individuals, corporate, government and other entities based on various Islamic modes of finance such as Murabaha, Ijarah, Musharakah, Mudaraba and other modes and would generate income
• The Bank will calculate income from the pool on a monthly basis. This income will be shared between the Bank and the Depositors as per a pre agreed profit sharing ratio
• The profit share of the Bank is called the Mudarib’s share. This profit sharing ratio between the Bank and the Depositors is determined at the beginning of each month
• The profit share of the depositors is based on the predetermined weightages assigned at the beginning of the month. A weightage based profit distribution mechanism ensures that the return paid to any Customer in a Profit & Loss sharing contract is proportionate to the risk taken

• In the case of a loss, as per the rules of Mudaraba, the loss will be borne solely by the Rabbul Maal. The loss will be distributed between various categories of customers on a pro rata basis. Bank also suffers loss as no income is generated against its efforts

To Understand the Difference between Islami premium saving account and conventional saving account kindly click

The documents required vary with the customer category as follows:

• Salaried Individual /Joint Account Holders

• • Filled Account Opening Form
  • Computerized National Identity Card (CNIC)
  • Passport (for Non-residents only)
  • Employment proof (Pay slip, Employment letter etc)

• Sole Proprietors
  • Filled Account Opening Form
  • Computerized National Identity Card (CNIC)
  • Passport (for Non-residents only)
  • NTN Certificate

• Partnership/Club/Society/Association/NGO/Trust
  • Certified Copy of Partnership/ Trust Deed
  • Certificate of Registration
  • Signatures of all Partners on letter of Partnership
  • Certified copy of rules
  • Certified copy of resolution
  • Copy of by-laws
  • Copy of NTN Certificate
  • CNICs of all Partners
  • Passports (for Non-residents only)

• Limited Company
  • Certificate of Incorporation
  • Certificate for Commencement of Business (PLC only)
  • Memorandum of Association
  • Articles of Association
  • Current list of Directors
  • Copy of Board Resolution
  • CNICs of all Directors
  • Copy of NTN Certificate and Form 29

Q. Who the target Market of Islamic premium Saving Account?

In Islamic Premium Saving Account targeted towards HNWI (High Net Worth Individuals), sole proprietors, traders, NGOs, business entities etc. It is a two-tiered account with no transaction limits and convenience of fund accessibility

Q. What is a Mudaraba?

Mudaraba is a form of partnership where one party provides funds while the other party provides expertise and management to manage the business or investment fund. The provider of funds is known as Rabbul Maal and the entrepreneur is referred to as Mudarib.The profit is shared in pre-agreed ratios, and loss, if any, unless caused by negligence or violation of terms of the contract by the Mudarib is borne by the Rabbul Maal.

Q. Who determines if Islamic Premium Saving Accountis Shariah Compliant?

The Shariah Supervisory committee of BankIslami, comprising of Mufti Irshad Ahmad Aijaz (Chairman, Shariah Supervisory Board), Mufti Javed Ahmad (Resident Shariah Board Member) & Mufti Muhammad Husain Khaleel Khail (Member, Shariah Supervisory Board) has the responsibility to oversee that all products, process and transactions pertaining to any deposit product offered by BankIslami are Shariah compliant. A Shariah Audit is also conducted periodically to ensure compliance with Shariah. The State Bank of Pakistan also conducts a Shariah Audit to ensure Shariah compliance.

Q. What makes islami Premium Saving Account Shariah Compliant?

All funds raised by BankIslami are invested in businesses which are in compliance with Shariah. Importantly, they are invested in the manner which is prescribed by Shariah. All profit & losses are pooled and distributed according to rules of Shariah between BankIslami and the depositors.

The pre-agreed profit sharing weightage is announced at the start of each month and can be obtained from the branch, Website or Phone Banker. Based on this profit sharing weightage, the Islami Premium Saving AccountAccount holder would be distributed the share in profit for the month at the beginning of the next month.

Q. What is the relationship between an Islami Premium Saving Account holder and BankIslami?

Islami Premium Saving Asaan Account holder provides funds as ‘Rabb-ul-maal’ and BankIslami invest these funds as ‘Mudarib’ i.e the fund manager. Based on this relationship, the depositors and BankIslami become beneficiaries of the profit earned. When the joint investment pool earns profit, it is distributed in the pre-agreed ratio of depositors and BankIslami. In case of the unlikely event of loss, the depositors on the pro-rata basis bears the loss whereas the Bank goes un-rewarded for all its efforts and bears all the costs incurred for doing the business.

Q. How is the Customer’s profit calculated?

Profit from the pool of Shariah compliant assets is calculated at the end of every month. BankIslami keeps a share of the profit as a Mudarib’s share. The balance profit is distributed between various categories of Customers as per predetermined weightages. The profit amount for each category is used to calculate the profit rates for the relevant category of customer, which are announced at the beginning of next mont

Q. What is the profit offered on Islami Premium Saving Account?

As per Shariah requirements, profit can not be committed to the customer upfront. The profit rates can only be determined after actual income from pool of assets is determined. Profit announcement at the beginning of next month will determine the profit paid. However, the sales person can share the rates announced for previous months to provide the customer with indicative rate(s).

Q. What is withholding tax on profit?

Withholding tax is a tax payable to the Government of Pakistan on the profit credited in the account of a Savings or Term Account holder.