Mudaraba Term Deposit (MTD) is a mode of deposit under Mudaraba principles of Islamic Shariah. It is a profit / loss bearing product. These deposits are repayable subject to a period of notice and hence known as time deposits or time liabilities meaning thereby that these are withdraw able subject to a period of notice and not on demand.

Deposits under MTD are accepted for different tenures as decided by the Bank and are entitled to receive profit on their deposit on the basis of weightage as decided by the management. A receipt is issued against each deposit under MTD. The bank’s decision in this respect is final & binding on the Mudaraba Term Depositors.

Eligibility for opening the account

Mudaraba Term Deposit Account (MTDA) can be opened in the name of:

• Individual (Single).         
• Two or more persons (joint).         
• Banks/NBFIS/NGOs         
• Govt. / Semi-Govt. Offices / Corporations / Autonomous bodies.
• Limited Companies (Both Private and Public)
• Partnership Firm
• Societies / Clubs / Associations / Local Bodies

Features of Mudaraba Term Deposit Account  

• This deposit product is guided by the Mudaraba principles of Islamic Shariah.
• Bank will invest the MTD fund through Shariah compliant investment modes along with the other Mudaraba fund to earn profit.
• Until otherwise decided, the profit sharing ratio is 35:65 between MBL & the depositor in MTD.
• All Govt. Taxes, VAT, Excise duty etc imposed by the regulatory bodies time to time including management charges are applicable on MTD.
• Actual profit on the MTD will be calculated at the day end on the basis of weightage fixed by the bank.
• MTD can be opened for 01 month, 3 months, 6 months, 12 months & 24 months tenure or for any other tenure as approved by the bank.
• If not instructed otherwise, the MTD will be automatically renewed for another term under the terms prevailing at the time of renewal along with the provisional profit, if any.
• Minimum amount to open an MTD is Tk.10,000/-. A Mudaraba Term Deposit Receipt (MTDR) shall be issued there against and MTDRs are not transferable.
• MTDRs are is neither Transferable nor Negotiable and as such payment against this instrument with profit shall normally be made to the depositor on maturity.

Provisional Profit Rate  

The total profit is calculated and distributed as per yearly declared ratio, which is currently 65% (Depositor): 35% (Bank).The bank as the Mudarib, every year declares a provisional rate of profit to be given to the depositor, which will be adjusted with the actual profit work out on year ending. If the actual profit is higher than the provisional profit, bank will credit the excess amount to the beneficiary and if it is lower than the provisional rate, bank will claim refund from the beneficiary. However, if the amount of excess or shortfall is less than Tk.100/- than no party will claim refund & forego their respective claim.

Other Rules & Conditions

• Any maturity date falling on holiday, the payment shall made on next opening day. Any MTDR payable to either or Survivor may be paid to any one only after maturity. In case of premature encashment all the signatories will sign and discharge the MTDR although there might be the instruction like either or survivor etc.
• In the event of death of the Depositor(s) the principal and provisional profit shall be paid as per Instruction contained in the Account Opening Form (AOF). The amount thereon can be distributed to the nominee, one or more legal heirs or legal representatives. The formalities regarding “Deceased Account” are applicable in this regard.
• Branch, in case of premature encashment shall make payment of principal amount of the relevant MTD together with up to date provisional profit there against at Mudaraba Savings Account provisional profit rate to the owner(s) after observing all necessary formalities. However, no provisional profit against premature encashment will be paid if the period of deposit is less than 30 days.
• Provisional profit on MTD will be given on maturity of the MTD which will be subsequently adjusted with the actual profit at the end of the year. If the actual profit is higher than the provisional profit, bank will credit the excess amount to the beneficiary and if it is lower than the provisional rate, bank will claim refund from the beneficiary. However, if the amount of excess or shortfall is less than Tk.100/- than no party will claim refund & forego their respective claim.
• In case of lost / stolen/ burnt / damaged or mutilation, duplicate MTDR will be issued at the request of the customer/purchaser. Duplicate MTDR will be issued with prior approval from Head Office in compliance with the necessary formalities by the branch.

Mudaraba Term Deposit Account (MTDR) Provisional Profit Rate

Effective from 1st November 2O22