Maybank Islamic targets RM2 billion additional deposits from newly launched i-FD
Maybank Islamic Berhad expects to generate additional deposits of RM2 billion within six months from the launch of its latest product, Islamic Fixed Deposit (i-FD). The Bank’s total customer deposits as at March 2010 stood at RM 31.8 billion.
i-FD is the latest deposit product by Maybank Islamic where the dividend is determined at the point of placement and paid upon maturity. It is a Ringgit fixed term deposit product based on the Shariah contract of Murabahah (cost-plus sale) with commodities as the underlying transaction assets. In the past, most term deposits under the Islamic banking scheme were based on the Mudharabah concept in which the returns are only known at the end of the tenure.
Chief Executive Officer of Maybank Islamic Berhad, Ibrahim Hassan said the introduction of i-FD was a strategic part of the bank’s efforts in developing a diversity of products that can meet the wealth management needs of every customer segment.
Fixed deposit customers now have three options for funds placement in terms of deposits – the General Investment Account-i (GIA-i) where dividend is determined at the end of the maturity period, the Profit Now! Account-i (PNA-i) where dividend is determined and paid upfront at the point of placement and now, the i-FD.
“We are confident that this complete range of fixed deposit options will help entrench our market leadership in Islamic banking, particularly in the area of customer deposits where we currently have a 21% market share,” he said.
Ibrahim said that with a minimum initial deposit placement of RM1,000, customers can enjoy the benefits of i-FD with flexible tenures ranging from 1 month up to 5 years. “Apart from knowing the rate of return at the time of deposit, they can also opt to receive the dividend payment on monthly or half yearly basis or upon maturity of the deposits,” he said.
Ibrahim said that the i-FD offers added benefits to individual customers who will be given free Takaful personal accident coverage of up to RM10,000 throughout the deposit placement.
Ibrahim also added that the product is expected to be well-accepted by individuals as well as business and corporate customers as it meets local and international Shariah standards.
The new Islamic Fixed Deposit (i-FD) as well as other Maybank Islamic’s products and services are offered at 12 Maybank Islamic branches and over 380 Maybank branches nationwide.
Maybank Islamic is the country’s leading Islamic commercial bank with assets exceeding RM40 billion. It is also the largest Islamic Banking institution in Asia Pacific and among the top 15 Islamic banks in the world.