Alfalah Education

Alfalah Education is a Term Deposit product with No Additional Cost (NAC) education insurance cover for account holders with school going children. Alfalah Education Account , beside offering competitive return on TERM DEPOSIT , offers tuition fee reimbursement of children for 15 years of schooling or up to their 20th birthday, in the unfortunate event of the death (either through accident, illness or natural causes) of the main breadwinner (account holder) parent.

Alfalah Education offers a competitive return on term deposit and secondly, it creates a contingency provision for our school going youth’s education in the hapless event of the death of any major breadwinner. The product seems rewarding in the current scenario of increasing number of children of school going age and the general public interest in quality education of their off springs.

Features

• Deposits can be placed in multiple of 100,000 units with maximum 3 units allowed per depositor, i.e. a maximum deposit per customer of Rs. 300,000 across all BAL branches.

• All 3 units can be purchased for 1 child or each for up to 3 children.

• No evidence of insurability (medical examination/health decoration) is required.

• Maximum entry point age is 55 years (renewable up to 64th birthday)

• Benefit payment increases with age/class of the child.

• The product will be offered as a 1 year term deposit at upto 7 % profit to be paid at maturity

• Premium cost for each deposit unit of Rs. 100,000 would be Rs. 85 per month and borne by the bank.

• Regular Zakat and WHT would apply on the deposit.

• Monthly payments set forth will be paid directly to the mother/guardian, regardless of the actual school fee.

• In case of joint account holders, only main breadwinner account holder would be covered under the policy.

• Premium will be paid to ALICO by BAL on monthly basis.

Benefit Schedule

Benefit Payable: for 15 years or up to the child age 20
Monthly Premium: Rs. 85
Deposit: Rs. 100,000

FAQs

1. What is Alfalah Education Term Deposit?
   Alfalah Education term deposit is issued as a one year TDR, renewable at maturity, caters to individuals/joint accounts only, with a free of cost added benefit of education insurance coverage of depositor’s child (ren).

2. What is education insurance coverage?
   Education Insurance coverage provides a contingency provision for depositor’s child’s tuition fee (upto the age of 20 year) in the hapless event of the death of the main breadwinner.

3. Who can avail this facility?
   Any Pakistani resident over the age of 18 years can avail this facility. This facility is offered only to individual/joint customers. Other customers like companies, corporate etc are not eligible to avail this facility.

4. What is the maximum entry point age?
   Maximum entry point age is 55 years (renewable up to 64th birthday).

5. Is the customer required to have an account with BAL?
   Yes. The Customer must be maintaining a Pak Rupees checking account with BAL and TDR facility shall be availed from the same branch.

6. What is the minimum & maximum placement limit for availing this facility?
   Minimum placement limit is Rs. 100,000/- (1unit) and maximum placement limit is Rs. 300,000/- (3 units). Units can be purchased for 1child or each unit upto 3 children.

7. What is the tenure of Alfalah Education TDR?
   The Alfalah Education TDR will be issued for one year tenure with auto renewal facility.

8. Is there any detailed medical examination required before the facility can be availed?
   No medical examination/health declaration is required.

9. How long is the insurance valid?
   The insurance policy will remain valid under the following conditions:
   a) Till the time, depositor maintains his/her funds under the product Alfalah Education Term Deposit.
   b) Till the time, the age of the depositor (main breadwinner) does not exceed 65 years.
   c) Till the time, the age of child (ren) remains within the age bracket of 5 year up to 20 year.

10. When will the profit be credited in the account?
    Profit will be credited to the customer’s account on maturity (i.e. 1 year) after deducting applicable WHT, Zakat levy etc.

11. What happens on the maturity of TDR?
    The TDR will be auto renewed for the next term at the prevailing rate of profit. In case, the customer is willing to encash the TDR at the time of maturity, he/she will furnish the request at least 3 working days prior to its maturity date in writing to the branch to encash his/her TDR and credit the principal amount to his/her account (as mentioned in application form)

12. Is premature encashment allowed?
    Yes, premature encashment is allowed at any time upon the request of the customer.
    

13. How profit will be calculated on premature encashment?
    Profit will be calculated at the prevailing rates of Normal TDR as per the following schedule.
     

    Tenure Completed	Expected Rate of Profit
    More than 1 month less than 3 months	Prevailing rate of TDR for 1 month
    More than and equal to 3 month but less than 6 months	Prevailing rate of TDR for 3 month
    More than and equal to 6 months but less than 1 year	Prevailing rate of TDR for 6 month

     

14. Is there any premium penalty on premature encashment?
    Yes, In case of any premature encashment upon customer request, prevailing premium rate (i.e. Rs. 85/- per deposit of Rs. 100,000/-) shall be recovered from the customer for the remaining months will be deducted from the principal amount.

15. What shall be the procedure if a customer is found maintaining placement of more than Rs. 300,000/- in Alfalah Education TDRs at same or any other BAL Branch?
    In case, customer is found maintaining placement for more than Rs. 300,000 (3 units), all subsequent Alfalah Education Term Deposit Receipt placed at same or any other BAL branch shall be treated as normal TDR and any rate differential on already paid profit shall be recovered from customer along with insurance premium cost.

Application Process

To begin the process and further details please call 111-225-111 or visit your nearest Bank Alfalah Branch.