Qatar’s first Islamic financial institution, Qatar Islamic Bank (QIB) has launched its new series of Flexible Certificate of Deposits (Flexi CD) with the ability to make partial redemptions in Qatari Riyal and US Dollar with one, two, and three-year tenors.
According to the statement, QIB’s new Flexi CD provides its consumers more flexibility and control, in addition to better-expected profit rates.
It is issued as an investment “Mudaraba” product, allowing retail customers to collect profits by the end of each quarter as well as to make early and partial redemptions during the tenor of their Flexi CD.
“In case of early redemption, the balance amount of the Flexi CD will continue to earn the same expected profit rate. These CDs can be booked in a few simple steps, anytime through QIB Mobile app,” as per the statement.
“Being the first bank in Qatar to have launched the Certificate of Deposits, we are pleased to further enhance this product and offer our retail customers more flexibility with new and innovative Shariah-compliant products. At QIB, we have a saving culture and we encourage our customers to grow their savings and we offer them higher expected returns. The new launch comes as part of our ongoing efforts to provide our retail customers with new and innovative products that will enable them to grow their money safely while getting profits distributed every quarter-end. We believe that such type of services will help customers optimize the utilization of their deposits and grow their deposit portfolio.”
Through the QIB Mobile App, customers will be able to perform up to two partial redemptions with no charges, provided that the value of both redemptions does not exceed 50 percent of the original value of the Flexi CD.
Flexi Certificate of Deposits are developed to encourage customers to make long-term savings and get attractive annual profit based on the certificate’s maturity and selected currency.
The bank said that the Flexi Certificate of Deposit holder can apply for a financing amount up to 100 percent of the Flexi CD value, and for a financing tenor equivalent to the certificate maturity. The minimum subscription in the Flexi Certificate of Deposit is QR 100,000 or $25,000.