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FAQ’s: Alfa Term Deposit – IslamicFAQ’s: Alfa Term Deposit – Islamic

FAQ’s: Alfa Term Deposit – Islamic

Alfa Term Deposit is a digitized Term Deposit product on Alfa which offers instant Term deposit booking, real time Term deposit receipt, customizable maturity instructions, and option to early encash the term deposit. With this product, customers can save their amounts by booking a term deposit for 1 month to 1 year and earn halal profit on their savings.

Log on to Alfa, Go to ‘Savings’ option and Tap on ‘Alfa Term Deposit’. Upon tapping below two sections will appear

  • Book a Term Deposit: Customers can book an Alfa Term Deposit and get an instant downloadable receipt of the term deposit.
  • My Term Deposit: All booked Alfa Term deposits will be shown here with their overall summaries and Active/Matured status. Customers can perform below actions in this section
    1. Change Maturity instructions
    2. Early Encash a Term deposit
    3. Download Term Deposit receipt
    4. Download Withholding Tax Certificate
    5. Track all their booked Alfa Term Deposits

Minimum amount is Rs.500. Bank Alfalah branch account holders can book Term deposits without any maximum limit through Alfa.

Wallet customers cannot book a Term Deposit for now.

Please visit rate sheet for Alfa Term Deposit – Islamic rates.

Alfa Term Deposit tenors are also as per the Bank’s rate sheet which are as below

  • 1 month
  • 3 months
  • 6 months
  • 1 year

Profit payment frequency is aligned with the Bank’s prevailing instructions which are as below

  • Monthly
  • Annually/Maturity

Below customizable instructions on maturity are offered. Instructions can later on be updated by the customer as well

  • Encash at Maturity: Term Deposit will be encashed on the selected tenor. Principal amount and profit will be deposited into Customers account.
  • Rollover Principal: Term Deposit Principal amount will be automatically rolled over when the selected tenor is completed with the exact same details as initially booked and profit will be disbursed into customer’s account.
  • Rollover Principal + Profit: This option will only be available for Term deposits where profit payment frequency is set at Maturity and not Monthly. Upon completion of the selected tenor, Term deposit principal and profit amount will be rolled over automatically with the same details as initially booked.

Yes, Zakat will be deducted as per Zakat and Ushr ordinance, automatically upon Term deposit Encashment or Maturity if Term deposit booking amount is greater than announced Nisaab amount for the period, and Term Deposit is booked before 1 st of Ramzan and encashed/Matured afterwards

During Booking the Term Deposit, customers will see an option for Zakat exemption. If the customer wants to get Zakat exemption, then he will have to check-mark the option and identify himself as a ‘Muslim’ or ‘Non-Muslim’ by selecting the given checks. If selected Muslim, customer will have to email a soft copy of the CZ-50 form and his CNIC at Zakat@bankalfalah.com. If selected Non-Muslim, then he will be required to send a soft copy of his CNIC on the same email address.

Customers can refer to this Certificate to see how much tax has been deducted on their profit payments against the booked Term deposit. Tax deduction will be automatic and based on Filer/Non-Filer status.

Early encashment will be done as per Bank Alfalah Islamic premature encashment policy

Below SMS intimations will be done as per their respective triggers

  • Booking Confirmation
  • Profit disbursement
  • Early Encashment of the Term deposit
  • Regular Encashment/Maturity of Term deposit
  • Rollover intimation
  • Change in Maturity Instruction Intimation