QIB has launched its first series of ‘certificates of deposit’, which the bank said is a “first of its kind in Qatar”.
The bank’s certificates of deposit will be available for individuals and corporate customers in Qatari riyal and dollar for different tenors of two, three and five years.
“Certificates of deposit are developed to encourage customers to make long-term saving and get attractive annual profit based on the certificate’s maturity and selected currency,” QIB said.
The certificates of deposit’ annual profit in Qatari riyal is expected to be 3.5% for five years, 3.25% for three years and 2.75% for two years.
As for the certificates of deposit in dollars, the expected annual profit is 2.75% for five years, 2.25% for three years and 1.75% for two years.
Certificates of deposit are fully Shariah-compliant and profits incurred will be distributed to customers every quarter. The deposit holder is also able to apply for financing up to 95% of the certificate of deposit amount, with financing tenor equivalent to the certificate maturity.
The minimum subscription in the certificate of deposit is QR100,000 or $25,000, with no maximum amount. The certificates of deposit are cashable at any QIB counter to its holder exclusively and they are none tradable and none transferrable.
“One remarkable benefit of this exceptional QIB offer is that it provides customers with the opportunity to grow their funds safely throughout the duration of the certificates. The first series of certificates of deposit is for a limited period, other series may be issued in future,” QIB said.
QIB Group CEO Bassel Gamal said, “We are proud to be the first bank in Qatar, which launches the certificates of deposit for individual and corporate customers. This is part of our on-going efforts to provide our customers with new and innovative Shariah-compliant products that will enable them to grow their money safely while getting profits distributed every three months”.
“We have tried through these certificates of deposit to satisfy all segments of individuals and corporate, current and prospective customers by presenting various options in respect of the certificates’ currency and maturity period, allowing clients to choose the type which meets their personal needs or supports their businesses. They may also get finance backed by the certificates’ value without the need to break the certificates in case the client needs cash for any emergency” Gamal added.
