Mudaraba Term Deposit (MTD) is a mode of deposit under Mudaraba principles of Islamic Shariah.It is a profit / loss bearing product. These deposits are repayable subject to a period of notice and hence known as time deposits or time liabilities meaning thereby that these are withdraw able subject to a period of notice and not on demand. Deposits under MTD are accepted for different tenures as decided by the Bank and are entitled to receive profit on their deposit on the basis of weightage as decided by the management. A receipt is issued against each deposit under MTD.
- This deposit product is guided by the Mudaraba principles of Islamic shariah.
- Bank will invest the MTD fund through shariah compliant investment modes along with the other Mudaraba fund to earn profit.
- Until otherwise decided, the profit sharing ratio is 30:70 between TBL & the depositor in MTD.
- Actual profit on the MTD will be calculated at the day end on the basis of weightage fixed by the bank.
- Provisional profit on MTD will be given on maturity of the MTD which will be subsequently adjusted with the actual profit at the end of the year. If the actual profit is higher than the provisional profit, bank will credit the excess amount to the beneficiary and if it is lower than the provisional rate, bank will claim refund from the beneficiary. However, if the amount of excess or shortfall is less than Tk.100/- than no party will claim refund & forego their respective claim.
- All Govt. Taxes, VAT, Excise duty etc imposed by the regulatory bodies time to time including management charges are applicable on MTD.
- MTD can be opened for 3 months, 6 months & 12 months tenure or for any other tenure as approved by the bank.
- If not instructed otherwise, the MTD will be automatically renewed for another term under the terms prevailing at the time of renewal along with the provisional profit, if any.
- Minimum amount to open an MTD is Tk.1,000/-. A Mudaraba Term Deposit Receipt (MTDR) shall be issued there against and MTDRs are not transferable. The beneficiary shall ensure safe keeping of the MTDR at his/her own risk and immediately notify the bank in case loss or damage of the MTDR.
- “Qard” facility up to 90% of the MTD can be availed by the beneficiary by complying with the rules of Qard.
- No profit shall be payable if the MTD is encashed before maturity. However, bank reserve the right to pay profit on the deposit amount at the rate of provisional Mudaraba Savings Deposits for a minimum period of 30 (thirty) days and its multiples.
