The Prepaid Profit Deposit Account allows you to invest your funds as an investment deposit and receive your expected profits based on estimated and expected percentage rate from the moment the investment begins. Safwa invests your funds on your behalf through a carefully structured investment plan that complies with Islamic Sharia principles.
This account is an ideal option for those seeking a reliable investment that delivers a planned return while maintaining full Sharia compliance and a smooth banking experience.
Prepaid Profit Deposit Account
Terms & Conditions:
- This account is based on an unrestricted Sharia-compliant Mudaraba for a specified period, whereby the customer authorizes the Bank (as the Mudarib) to invest the funds. The Mudaraba is structured over defined periods, with a minimum investment amount set per currency. A portion of the expected profits is paid in advance. A quarterly settlement is conducted between the actual returns and the expected returns, while the final net settlement is carried out only at the end of the deposit term and is calculated based on the daily average balance.
- Profits are paid on the agreed maturity date.
- The Bank determines from time to time the minimum and maximum amounts accepted for deposits in Jordanian Dinar or their equivalent in other currencies.
- The investment period begins on the business day following the deposit of funds and extends for 12 months, 18 months, or 24 months, as requested by the depositor.
- The deposit is not automatically renewed.
- Withdrawal is permitted only under very limited circumstances. If the depositor withdraws the investment deposit before maturity and before profit distribution, the depositor acknowledges that all prepaid profits will be forfeited. The Bank has the right to apply the approved returns for savings accounts as published on the Bank’s website.
- Profit entitlement accrues on the deposit amount on the last day of each quarter and is credited to the customer’s account within a period not exceeding fifteen days of the month following the quarter in which the profit became due.
- The Bank is not obligated to repay the deposit in the same currency of deposit. However, upon request, repayment may be made via transfer in the same deposit currency and at the prevailing exchange rate on the repayment date.
- The Bank is not obligated to accept requests for early withdrawal. However, early withdrawal may be permitted in special cases approved by the Bank’s management. In such cases, the customer must provide the Bank with a five business-day prior notice. The Bank has the right to conduct the necessary settlement to recover any excess profits already paid, and the withdrawn deposit shall be treated based on the actual period it remained in the joint investment pool and in accordance with the approved savings account returns.
- The Bank, in its capacity as Mudarib, reserves the right to deduct a specified percentage from the profit shares of both depositors and shareholders from the net profits of the joint investment pool before deducting the Mudarib’s share, for the purpose of profit stabilization in favor of depositors and shareholders. The deducted amounts may be set aside, retained, and disbursed subject to the prior approval of the Bank’s Sharia Supervisory Board.
- The Bank, in its capacity as Mudarib, also reserves the right to deduct a specified percentage from the net profits attributable to depositors after deducting the Mudarib’s share, for the purpose of investment risk mitigation solely for the benefit of depositors. The deducted amounts may be set aside, retained, and disbursed subject to the approval of the Bank’s Sharia Supervisory Board.
- Income tax is automatically deducted when prepaid profits are credited. In the event of early withdrawal, the paid tax amount is non-refundable.
- The Bank provides instant SMS notification services to ensure ease of monitoring transactions related to the deposit.
- This account is fully compliant with Islamic Sharia rules and principles.
