Emirates Islamic Bank is one such bank offering exclusive Islamic banking products in the UAE, with the Emirates Islamic Bank zero balance accounts being among the most preferred savings accounts in the UAE.
The purpose of a deposit account is to earn profits on your account balance. For this very reason, some people prefer a fixed deposit account since the returns on the account are high. With Dubai Islamic Bank Long-term Wakala deposit account (5 years), you can earn a much higher interest rate on your deposits. A Wakala deposit account is an amalgamation of deposit and investment account that offers you the best of both worlds in one account. You can use this account to safely invest your savings and earn higher interests on your hard-earned money.
DIB Long-Term Wakala Deposit account (5 years) has several benefits that will compel you to open this account immediately:
When you choose to open a DIB Long-Term Wakala Deposit account (5 years), the bank explains to you the expected profits annual pay-offs for the account based on its performance in the previous years. Before opening the account, you will have a fair idea of the amount you will earn by depositing your money in this account. This will help you to plan your future better.
One of the thumb rules of investments is “the higher the risk, the better the return”. When you open a Wakala deposit account, you permit your bank to invest in Shari’a compliant trade. The bank invests your deposits in the stock market to maximize the profit. Experts agree that the longer you stay in the market, the more profits you earn. DIB long-term Wakala Deposit account (5 years) circulates your money in the market to buy and sell stocks to ensure better returns to you. You may be concerned about your finances since the market keeps rising and falling. Don’t worry! The bank ensures that you do not lose your money. In the worst-case scenario, you may not earn any profit but you will receive a 100% deposit back. However since the bank invests for a longer period, the risk of losing money is minimized and you earn more. Besides the reinvestment opportunity offered with an account ensures you always end up on the winning side.
A reinvestment opportunity is an additional benefit on your DIB Long-Term Wakala Deposit account (5 years) that allows you to mitigate your finances, in case you did not earn any profit, or enhance your profits by reinvesting.
Let us say that you invested AED 100,000 in your DIB Long-Term Wakala Deposit account (5 years) in 2015. Between 2015 and 2019, you receive profits at the interest rate of 1.5% per annum. By the last quarter of 2019, you would have earned 6% interest increasing your fund value to AED 106,000 in four years. However, in 2020 the market lost some points reducing the rate of interest to -2%. Under such circumstances, you will earn AED 4000 on your deposits in 5 years. Now let us say that the market climbs again and you want to make more profit. You can reinvest the money for another 5 years and earn more profits on your principal amount and earned interest.
As a DIB Long-Term Wakala Deposit account holder, you receive a free credit card against your deposit account. Accepted all across the globe, this card provides you with countless offers such as roadside assistance and credit card shield cover. Using this card for shopping will fetch some of the best discounts and cashback offers which will optimize your shopping experience. Additionally, you will be instantly enrolled in DIB’s Wala’a Dirham loyalty program. According to this program, you will earn 100 Wala’a Dirham on credit card bill payments every month. In case if you pay two or more credit card bill payments in a month, you will be granted 200 Wala’a Dirham by the bank. Since you will be already enrolled in the program, you will also earn Wala’a Dirham on your Wakala deposits, savings account, current account, and other transactions. You can earn up to 8000 Wala’a Dirham with a deposit of 1 million and above. 1 Wala’a Dirham is equivalent to AED 1. You can redeem the Wala’a Dirham to pay your DEWA bills.
DIB Long-Term Wakala Deposit account is a low maintenance account as you will not require any services from the bank after the deposit. Besides, the bank can earn profits on your deposit. Owing to these factors, the bank does not charge any maintenance fee for opening and maintaining this type of bank account.
As per the past performance and market predictions, the bank expects a profit rate of up to 1.5% per annum for your DIB Long-Term Wakala Deposit account (5 years). In 5 years, this profit will sum to 7.5%. The Dubai Islamic Bank will pay the earned profit to you on the maturity of the deposit.
|Penalty in case of premature liquidation|
|Deposit liquidation in < 6 Months||100% of Wakala Profit|
|Deposit liquidation in >= 6 months < 12 Months||75% of Wakala Profit|
|Deposit liquidation in >= 12 Months < 24 Months||50% of Wakala Profit|
|Deposit liquidation in >= 12 Months < 24 Months||40% of Wakala Profit|
|Deposit liquidation in >= 12 Months < 24 Months||30% of Wakala Profit|
|Deposit liquidation in >= 48 Months < 60 Months||20% of Wakala Profit|
|Processing Fee for due diligence and documentation against Investment / Wakala Deposit||Between AED 315 and AED 1,050|
You need to deposit AED 25,000 or more to open a DIB Long-Term Wakala Deposit account.
DIB Long-Term Wakala Deposit account (5 years) is an exclusive bank account that does not accept any currency except AED. In case you need to deposit money using another bank currency, consider other accounts offered by Dubai Islamic Bank.
You can open a Long-term Wakala deposit account if you are 18 or above and a UAE resident or National.
You will require the following documents to open a DIB Long-term Wakala Deposit account (5 years):
Please note: this list of documents is not final. The bank may require more or other documents to open and verify your account.
You can open a Wakala deposit account (5 years) via an offline or online platform
To open the account offline you require to:
To save your physical efforts, the bank also allows you to open your Wakala deposit account online:
You can also book a call from the bank online to receive a call back from the bank and open the account
Your DIB Long-term Wakala Deposit account (5 years) can also be opened in a few minutes at policybazaar.ae
Q1: Does DIB Long-term Wakala Deposit account (5 years) comply with Shari’a norms?
Ans: Yes, all the investments made via DIB Long-term Wakala Deposit account (5 years) are Shari’a compliant.
Q2: Am I allowed to withdraw the deposit before the end of the tenure?
Ans: Yes, Dubai Islamic Bank allows you to withdraw your deposit before the end of the tenure. However, you will have to pay a penalty as per the bank’s norms (Refer to fee and charges section).