Savings
Agency deposit
“Savings” is an agency agreement where the Client (Muwakkil) instructs the Bank (Wakil) to invest its funds, which makes every effort to make a profit by investing in any Sharia-compliant business project, as agreed by the parties.
Muwakkil provides his funds in money, which will is in trust governance and disposal have Wakil. Cases in “Savings” must be conducted exclusively by Wakil within the framework of the obligations specified in the investment Agency Deposit agreement.
The profit from the investment project should be directed away from the Wakil to Muwakkil in the amount specified in the expected profit. In case of excess of the total profit, Wakil is entitled to receive a Wakil award in the amount of the balance after the payment of the estimated profit. At the same time Wakil, in any case, in advance at the beginning of the agreement, receives the agreed amount of Commission fee as an Agency fee.
The financial losses within the framework of “Savings” are fully borne by Muwakkil, unless Wakil's guilt of fraud, negligence or wilful default is proved. Muwakkil's obligations are limited to its investments, unless otherwise specified in the “Savings” agreement.
Example: Client A opened an investment agency deposit based on “Savings”, placed 5,000,000 tenge for a period of 12 months with an expected return on the deposit of 10% or 500,000 tenge. At the same time, the Client paid in advance the agency commission to the Bank in the amount of 300,000 tenge.
Upon the expiration of the agreement, analyzing the results of its investments, the Bank came to the conclusion that the profit on the project amounted to 1.200.000 tenge, which exceeds the expected return. Considering the peculiarities of the “Savings” agreement, in case of exceeding the expected return, the Prize is provided for: the Bank sends 500,000 tenge (expected return) to the Client.
Thus, the Client receives 5.500.000 (5.000.000+500.000) tenge. The Bank also receives an income of 1.000.000 tenge, consisting of 300.000 Agency fee and 700.000 “Savings” premium.
The Bank provides two types of agency deposit of “Savings” – Standard and Amin. The main differences between deposits: deposit currency, urgency, rate of profit, the possibility of partial withdrawals.
According to the agency agreement of “Savings” Standard, the client does not limit the Bank in the choice of projects and modes of investment. The “Savings” Amin agreement involves investments in highly liquid transactions with established profitability.
Product Name |
“Savings” Standard |
Deposit currency |
KZT (tenge), USD (US dollars), EUR (euro) |
Minimum amount of down payment |
1 500 000 KZT / 5 000 USD / 5 000 EUR |
Maximum deposit amount |
not limited |
Maturity |
12 months |
Expected return |
depends on currency of the deposit |
Periodicity of profit payment |
monthly and on expiry date |
Additional contributions |
allowed |
Partial withdrawal |
allowed |
Minimum balance |
Is equal to the initial instalment |
Note 1: Deposit terms may be changed individually by the decision of the authorized body.
Note 2:
1) Partial withdrawal is allowed subject to keeping Minimum balance throughout the Deposit term. At that the Deposit terms are considered not violated, and expected return from investing the remaining amount is accrued according to the Agreement.
2) In case of early withdrawal of the deposit:
- in less than one month after placing the deposit, Agreement terms are considered violated by the client, the Agreement is subject to termination, the deposit shall be returned. The profit on the deposit is not paid in such case;
- upon expiration of one month after placing the deposit, the profit is paid for an actual deposit period.
Deposit Tenor |
Expected rate of return (per annum) |
|
in tenge |
in USD/EUR |
|
12 months |
10% |
2,5% |
Product Name |
“Savings” Amin |
Deposit currency |
KZT (tenge) |
Minimum deposit amount |
1 000 000 KZT |
Maximum deposit amount |
not limited |
Maturity |
14 days |
Expected return |
5% per annum |
Periodicity of profit payment |
On expiry date |
Additional contributions |
allowed |
Partial withdrawal |
allowed |
Minimum balance |
Is equal to the initial instalment |
Note 1: Deposit terms may be changed individually by the decision of the authorized body.
Note 2:
1) Partial withdrawal is allowed subject to keeping Minimum balance throughout the Deposit term. At that the Deposit terms are considered not violated, and expected return from investing the remaining amount is accrued according to the Agreement.
2) In case of full early withdrawal of the deposit without keeping a minimum required balance after 14 and more calendar days after depositing, profit on the deposit is paid for actual period of deposit placement.
3) In case of full early withdrawal of the Deposit without keeping a minimum required balance before expiration of 14 calendar days after depositing the profit on the deposit is not paid.