A fixed-time Mudarabah account is a specialized deposit account that combines the features of a traditional fixed-time deposit with the principles of Islamic Mudarabah. Unlike conventional fixed-time deposits, which offer a predetermined interest rate, Mudarabah accounts involve a profit-sharing arrangement between the depositor and the financial institution. The depositor’s funds are invested in a predetermined business venture or portfolio, and the profits generated are distributed between the depositor and the institution based on an agreed-upon ratio

Features

• The Mudarabah fixed time deposit shall be opened with Birr 100;
• It shall be opened for a limited period of time;
• The minimum period shall be three months;
• The accounts operate on a contractual basis;
• A certificate shall be given to the Mudarabah fixed term account holder;
• It shall be opened with or without passbook;
• The bank offers a minimum profit sharing ratio 30%: 70% (Bank: Customer)
• Upon the request of the customer the contract shall be revolved for the same period
• The profit payment shall be done upon maturity of the contract.

Eligibility criteria

• Comply with standard KYC and due diligence procedures;
• The applicant must declare that the funds originate from lawful (halal) business activities