2. Is the product covered by Malaysia Deposit Insurance Corporation (PIDM)?

Transcription

1 PRODUCT DISCLOSURE SHEET (Read this Product Disclosure Sheet (PDS) before you decide to subscribe for the Link Current Account-i (Link CA-i). Be sure to also read the general terms and conditions. Seek clarification from your financial institution if you do not understand any part of this document or the general terms of this Product. AL RAJHI BANK LINK CURRENT ACCOUNT-i This PDS is dated /.. (Date issued to customer ) 1. What is this product about? Link CA-i is a demand deposit account which has two types of deposit account- (i) Qard Account-i ( QA ) and (ii) Term Deposit-i ( TD ), linked together. The Account allows for the Customer to switch and transfer the Deposit from QA to TD and vice versa. The principal and profit are guaranteed. Link CA-i is structured on the Shariah contracts of Qard, Murabahah and Wakalah bil Ujrah. The Customer may refer to Sections 3 and 4 for detail Shariah contract and features of this Link CA-i. 2. Is the product covered by Malaysia Deposit Insurance Corporation (PIDM)? Yes. This product is covered by Malaysia Deposit Insurance Corporation (PIDM). 3. What is the Shariah contract applicable & Description of the transactions underlying the Shariah contract The Shariah contract applicable is:- (i) Qard (loan) applicable to QA; (ii) Murabahah (cost plus profit) applicable to TD; and (iii) Wakalah Bil Ujrah (agency with fee) applicable to TD Contract of Qard The deposit from customers under QA is a loan to the Bank and the Bank has the right to utilise the deposit. The Bank will repay the said loan upon demand by customers. Contract of Murabahah This Contract of Murabahah is applicable to TD. A sale and purchase transaction of an identified commodity whereby the cost and profit are made known and agreed to by the Customer and the Bank (cost plus profit) (Tawaruq concept). The Customer will appoint Al Rajhi Nominee (Tempatan) Sdn Bhd to act as his agent to execute the Murabahah transaction(s) (sale and purchase of commodity) with the Bank. For information on Al Rajhi Nominee (Tempatan) Sdn Bhd, please refer to Section 5 below. Al Rajhi Nominee (Tempatan) Sdn Bhd has established a dedicated unit known as Commodity Trading Unit (CTU) to undertake these tasks. As an Agent of the Customer, Al Rajhi Nominee (Tempatan) Sdn Bhd will purchase an identified commodity based on the purchase price which is equivalent to the Deposit allocated by the Customer in the TD. The information provided in this Disclosure sheet is valid as at 2015 Page 1 of 6

2 Upon completion of the purchase the Commodity (which includes completion of transfer of ownership and possession of the Commodity represented by certificate(s), Al Rajhi Nominee (Tempatan) Sdn Bhd will enter into a sale transaction with the Bank to sell the commodity on behalf of the Customer at the Murabahah Sale Price on deferred basis to the bank. The Bank agrees to buy the commodity from Al Rajhi Nominee (Tempatan) Sdn Bhd (as agent of Customer) at the Murabahah Sale Price. The Bank shall pay the Murabahah Sale Price on maturity. The Placement Period for each maturity is thirty (30) days. Please refer to Section 5 for the illustration on the calculation of Murabahah Sale Price. Contract of Wakalah Bil Ujrah In relation to TD, the Customer will appoint Al Rajhi Nominee (Tempatan) Sdn Bhd to act on its behalf with regards to the Murabahah Sale Transactions. For this role, Al Rajhi Nominee (Tempatan) Sdn Bhd has established a dedicated unit known as Commodity Trading Unit (CTU) and will be paid an agency fee. Such fee will be determined by the Bank from time to time as authorised by the Customer. The agency fee will be deducted from the Murabahah Sale Price. The net sale price payable to the Customer shall be the Murabahah Sale Price (net of Agency Fee). Salient Terminologies Kindly take note of and understand the following terminologies to avoid confusion:- Deposit the money deposited by the customers into the Account. The Deposit will be allocated to the QA and TD based on the ratio or fixed amount as agreed by the customers; Deposit Amount is the agreed fixed amount of money to be allocated from the Deposit to the TD. The minimum Deposit Amount is RM1, and subsequent amount in multiple of tens. The Deposit Amount will be credited automatically into the TD when the Customer deposits money into the Account. The Customer has to inform the Bank on the Deposit Amount agreed in the Account Opening Form; Deposit Ratio is the ratio of the allocation of the Deposit to the respective QA and TD as selected by the Customer; Profit means the actual profit as quoted or agreed to be paid to the Customer, net off the agency fee to be paid to Al Rajhi Nominee (Tempatan) Sdn Bhd. Murabahah Sale Price - the sale price (equivalent to Purchase Price plus Profit) payable to the Customer upon maturity of the TD. Murabahah Sale Transaction - the sale and purchase of commodity transaction(s) between the Bank and the Customer. The Customer shall transact the transaction(s) via his agent, Al Rajhi Nominee (Tempatan) Sdn Bhd. 4. What are the features of the product? The principal and profit of Link Current Account-i are guaranteed. There are two (2) main The information provided in this Disclosure sheet is valid as at 2015 Page 2 of 6

3 components of this Account QA and TD. The principal under QA and TD are guaranteed and the profit is derived only from the investment in the TD. QA is a non-profit bearing account. Customer has the flexibility to manage his/her deposits. He/she may choose the amount or ratio of deposit to be maintained in the QA and TD. The deposit in the QA and TD may be switched or transferred between these two (2) accounts. The account currency available is in Malaysian Ringgit. Minimum initial deposit amount: a) Minimum of RM3,000 for Individuals b) Minimum of RM5,000 for Non-Individuals The Bank reserves its right to revise the initial deposit amount from time to time. In relation to TD, the placement period of deposit is on 30 days cycle or any other period as determined by the Bank. Profit will be credited on completion of the placement period. As required by Bank Negara Malaysia s guidelines and directives with regards to rebate (ibra ) and as the Bank in its absolute discretion accepts, in the event of pre-mature withdrawal, Customer will grant rebate ( ibra ) on the Murabahah Sale Price and waive ( tanazul ) the Profit. The ibra and tanazul will be executed by the Agent on behalf of the Customer. Prevailing rate for the profit shall be disclosed by the Bank from time to time. Latest profit rates can be obtained from or the nearest branches. 5. What are the other key terms and conditions of this product that I should know? In relation to TD:- Premature Withdrawal As required by Bank Negara Malaysia s guidelines and directives with regards to rebate (ibra ) and as the Bank in its absolute discretion accepts, in the event of pre-mature withdrawal or termination of the TD, the Customer waives the entire or part of the Profit comprised in the Murabahah Sale Price as determined by the Bank. Illustration 2 will assist the Customer to understand further the ibra computation. Renewal TD may be renewed for principal or principal with profit. Customer is requested to provide the instruction to the Bank in the Account Opening Form. The Bank will continue to follow the Customer s instruction(s) as stated in the Account Opening Form until otherwise notified by the Customer. Al Rajhi Nominee (Tempatan) Sdn Bhd For ease of convenience to customers, Al Rajhi Nominee (Tempatan) Sdn Bhd has been identified by the Bank to conduct Murabahah transaction(s) on customers behalf with minimal agency fee deducted from the Murabahah Sale Price. A dedicated unit known as Commodity Trading Unit (CTU) was established by Al Rajhi Nominee (Tempatan) Sdn Bhd to undertake these specific tasks. The information provided in this Disclosure sheet is valid as at 2015 Page 3 of 6

4 The agency fee shall be determined by the Bank from time to time as per authorised by the customer and will be notified to the Customers or display on the Board Rate at our Branches. Please fill up the Agency Appointment Form to effect the appointment of Al Rajhi Nominee (Tempatan) Sdn Bhd. Kindly read and understand the terms of appointment of Al Rajhi Nominee (Tempatan) Sdn Bhd as stated in the Agency Appointment Form. The illustrations for the calculation of the agency fee are as below:- Formula: Purchase Price = Deposit Amount Profit = Deposit Amount x Profit Rate x Number of Days in Placement Period Number of Days in Year Agency Fee = Purchase Price x Agency Fee Rate x (Number of Days in Placement Period / Number of Days in Year) Murabahah Sale Price = Purchase Price + Profit Illustration 1: For TD placed until completion of the 30-day cycle: Term Deposit = RM50, Profit Rate = Based on tiering: TD-i Balance Band Profit Rate Up to RM20, % Above RM20,000-RM50, % Above RM50,000-RM200, % Above RM200, % Number of Days in Placement Period = 30 days Number of Days in Year = 365 days Agency Fee Rate = 0.01% Profit = TD-i Balance Profit Rate Calculations Profit Amount 20, % 20,000 x 0.35% x (30/ 365) = , % 29, x 0.45% x (30 / 365) = % 0.01 x 0.55% x (30 / 365) = % , Total Profit Agency Fee = RM 50,000 x 0.01% x (30/365) = RM0.41 Murabahah Sale Price = RM50,000 + RM = RM 50, * Amount payable to the Customer shall be net off the Agency Fee = RM 50, RM 0.41 = RM 50, The information provided in this Disclosure sheet is valid as at 2015 Page 4 of 6

5 Illustration 2: الهيي ة الشرعية Shariah Board The TD pre-mature withdrawn/early redeemed before the completion of 30-day cycle: Withdrawal/Early Redemption Amount = RM35, Profit Rate = Based on tiering: TD-i Balance Band Profit Rate Up to RM20, % Above RM20,000-RM50, % Above RM50,000-RM200, % Above RM200, % Number of Days in Placement Period = 30 days Number of Days Participated = 21 days Number of Days in Year = 365 days Tanazul / Ibra = Withdrawal Amount x Profit Rate x [(No.of Days in Placement Period No. of Days Participated) / Number of Days in Year] TD-i Balance Calculations Profit Amount Profit Rate 5, % 5,000 x 0.35% x [(30 21) / 365] = , % 29, x 0.45% x [(30 21) / 365] = % 0.01 x 0.55% x [(30 21) / 365] = % , Total Profit 3.76 *Should the Customer premature withdraw the placement in his/her TD before the completion of the 30-day cycle, he shall waive (tanazul) certain portion of the profit prorated up to the withdrawal date i.e. Customer shall waive RM3.76 from the total profit to be paid on his TD of RM16.85 and net profit will be paid to his TD at the end of the 30-day cycle will be RM13.09 (RM16.85 RM3.76). 6. What Forms do I need to fill-up? Account Opening Form - for Deposit in the Link Current Account-i. Customer may have one or more Link Current Account-i; Agency Appointment Form in relation to TD, for the appointment of Al Rajhi Nominee (Tempatan) Sdn Bhd. The terms of appointment are stated therein; Withdrawal Form for withdrawal of deposit in the Link Current Account-i; Please read and understand the terms and conditions as stated in the Forms and the Link Current Account-i T&C. 7. Will I be receiving any notifications or communication on placement or renewal of the TD? You will receive a monthly account statement for your Link Current Account-i. The Bank may notify you via Short Message Service (SMS) or any other mode of communication as deemed appropriate by the Bank. The information provided in this Disclosure sheet is valid as at 2015 Page 5 of 6

6 8. What are the fees and charges I have to pay? Please refer to the notice at our nearest branch, visit our website at or contact our contact centre at Customer Care: for details. 9. What should I do if there are changes to my contact details? It is important that you inform us of any changes in your contact information to ensure that all correspondences reach you in a timely manner. 10. Where can I get further information? Should you require any additional information about this product, please refer to the product brochure available at all our branches or visit our website at If you have any enquiry regarding our products and services, please contact our nearest branch or our contact centre at Customer Care : NOTE: THIS PRODUCT IS PRINCIPAL GUARANTEED. CUSTOMER WILL BE PAID THE PROFIT ON THE TERM DEPOSIT-i ONLY. QARD CURRENT ACCOUNT-i IS NON-PROFIT BEARING ACCOUNT. IF THERE IS PRE-MATURE WITHDRAWAL OF TERM DEPOSIT-i, THE CUSTOMER MAY LOSE PART OR ENTIRE PROFIT. THIS PRODUCT IS COVERED BY PERBADANAN INSURANS DEPOSIT MALAYSIA (PIDM). Approved by Al Rajhi Bank (Malaysia) Shariah Committee Attachment 4 of 10 to Ruling No: 108 (3) The information provided in this Disclosure sheet is valid as at 2015 Page 6 of 6