CORPORATE SAVER ACCOUNT

Transcription

1 CORPORATE SAVER ACCOUNT TRUST US WITH YOUR TRUST MONIES Your Partner Bank

2 GLOBAL NETWORK Al Baraka Bank is a fully integrated subsidiary of the Bahrain-based Al Baraka Banking Group, one of the world's leading Islamic banking groups. As a fully-fledged Islamic and commercial banking enterprise, Al Baraka Bank provides communities in this country with an essential alternative to conventional banking models. Shariah-compliant banking is becoming increasingly attractive to both Muslims and non-muslims in South Africa.

3 SERVING YOUR CLIENTS' BEST INTERESTS Al Baraka Bank stands ready to help you best assist your clients. OPENING THE DOOR TO A NEW ERA IN INVESTMENT Al Baraka Bank has, since inception, set out to continuously innovate, develop and introduce new products to better provide for the needs of the South African communities we exist to serve. PRODUCT OVERVIEW Al Baraka Bank's Corporate Saver Account is the only fully-fledged Shariah-compliant investment account offered by any commercial bank in South Africa in terms of Section 78 (2)(a) and Section 78 (2A) of the Attorneys Act 53 of Our Corporate Saver Account brings to the market a pure investment option as a viable alternative to interest-based financial instruments, thus affording both you and your clients the peace-of-mind that your chosen investment option is fully and wholly Shariah-compliant. 01

4 CORPORATE SAVER ACCOUNT TYPES CORPORATE SAVER... A PURE INVESTMENT Al Baraka Bank has introduced two Corporate Saver product offerings. These include: Section 78 (2)(a) Investment Account - This account is designed for Trust monies of various clients under the control of an attorney which are not immediately required. The return earned on such an account will accrue to the Attorney s Fidelity Fund; and Section 78 (2A) Investment Account - This account is for investments made on behalf of a specific attorney s client and the return earned on the account accrues to that attorney s client. UNPACKING OUR INVESTMENT ACCOUNTS Section 78 (2)(a) Investment Account - Your clients deposit trust funds into the Attorney s Trust Account, whereupon you, as the attorney, transfer such accumulated funds into the Al Baraka Investment Account, withdrawing capital invested as and when required. The profit/ income earned on the investment will be paid by yourself to the Attorney s Fidelity Fund. The section 78 (2A) Investment Account - Your client, in terms of a signed mandate agreement, authorises you to invest the deposit monies on their behalf for the duration of the property transaction, with a financial institution selected by your client. Upon registration of transfer of the property, the investment is closed and you pay over the permissible income or profit earned on the investment to your client. Because the yield earned is Shariahcompliant, your Muslim clients may utilise the returns earned for their personal benefit. 02

5 PRODUCT FEATURES SHARIAH- COMPLIANT YIELDS WHICH YOUR CLIENTS CAN ENJOY Al Baraka Bank s Corporate Saver Account is available to all attorneys who are permitted to hold funds in trust for their clients in terms of Section 78 (2)(a) and Section 78 (2A) of the Attorneys Act 53 of 1979; Attorneys are not required to hold a Trust Account at Al Baraka Bank, but we encourage you to do so; Provides for permissible income and Shariah-compliant returns on investments; Funds are invested for a fixed period of 35 days and are automatically reinvested on maturity; No penalty for early withdrawals; No minimum balance requirement; Subsequent deposits to the account are permitted; The account does not attract cash deposit fees or monthly service fees; Property guarantees may be generated on Section 78 (2A) investments, at a minimal charge; Quick turn-around time on the establishment of guarantees; and IT3 [b] certificates, individual statements of account and group investment statements are made available. 03

6 ATTORNEY S OBLIGATIONS YOUR QUESTIONS ANSWERED 04 In terms of this investment option, you will be responsible for: Opening and closing the account; Attending to signature requirements for all requisite account opening and closing documentation, whether in terms of Section 78 (2)(a) or Section 78 (2A); Furnishing the bank with updated FICA information pertaining to your law firm; Obtaining and retaining FICA documentation pertaining ENGAGE WITH US to your clients in respect of Section 78 (2A) investments; Furnishing guarantee instructions for the issue thereof, if so required; Reporting and attending to the payment of the Shariahcompliant returns to the Attorneys Fidelity Fund and/or your clients; and Furnishing IT3 [b] tax certificates to your clients upon receipt thereof from Al Baraka Bank. Al Baraka Bank is equipped to provide professional support in terms of addressing your investment queries, either by way of our Legal Division or through a Branch Relationship Manager. 1. What are the current returns on the product? Islamic investments earn a return based on a profitsharing model. Any income earned through the bank s financing operations are then shared between the shareholders and the bank s depositors. As the income earned by the bank varies week on week, so too would the rate offered on the product. Your Relationship Manager will be able to provide you with the current profit rates. 2. Are the returns on the product competitive? The returns on the product are marginally different to those of other banking institutions, based on the Shariah-compliance cost involved in offering an Islamic alternative to conventional banks. 3. Do the returns on the product fluctuate? Profit rates are revised weekly, based on the profit earned through the bank s financing operations during the preceding week. Profit rates, even though revised weekly, are relatively stable.

7 4. Can the returns on the product be negotiated, if the investment is of a substantial sum? The share between the bank s depositors is apportioned between the various products, based on a pre-determined profit-weighting ratio. This ratio, for the Corporate Saver product, is 65% and, as such, cannot be negotiated. 5. If my client requires a property guarantee, is there a fee levied by the bank? You are responsible for ensuring that the guarantee fee is paid for upfront on behalf of your client. The charge for the bank-generated property guarantee is not calculated on the value of the guarantee, but capped as a set minimal fee of R This fee is negotiable, having due consideration for the value of the investment. 6. Is the product electronically available? The Corporate Saver, as an electronic portal, is in development. Currently, this is a manual offering, where you are assured of effective service delivery. 8. Do I have to have a Trust account with Al Baraka Bank to invest herein? Not necessarily, but we do encourage you to do so in order to enjoy the investment benefits. 9. What is the notice period for the Corporate Saver investment? Notice for withdrawals on Section 78 (2)(a) investments is 24 hours; and No notice period for Section 78 (2A) investments, which have underlying investments in the form of guarantees. 10. How do I receive statements on the investment account? Statements will be forwarded to you on a monthly basis, and will also be available at any time, upon request. 11. Do I receive an IT3 [b] income tax certificate for submission to the client? Yes, your firm will receive an IT3 [b] tax certificate for onward transmission to your client. YOUR 7. Who do I make contact with to invest Trust 12. Where can I secure this product? monies? The Corporate Saver product is available via the bank s INVESTMENT, A Relationship Manager will be assigned to your account, website ( and becoming responsible for managing all your investment At your nearest Al Baraka Bank branch. THEIR PEACE- needs. OF-MIND 05

8 A SHARIAH INVESTMENT SOLUTION DESIGNED TO SUIT BOTH YOU AND YOUR CLIENTS Albaraka Bank Limited: Reg No. 1989/003295/06, FSP No. 4652, NCR No. NCRCP14 Albaraka Bank Limited is an authorised financial services and credit provider Al Baraka Bank: Tel: (ask for Legal Services) Website: