Mudarabah Saving (Ordinary Mudarabah) Account
Mudarabah is a form of partnership in profit whereby one party or customer provides capital (rab-al-maal), and the bank offers management, skill, or labor (mudarib). The capital provider has granted the mudarib to undertake any lawful business activities. It is the responsibility of mudarib/bank to invest in any suitable investment reasonably expected to yield higher profit, shared as per the pre-agreed profit sharing ratio. Mudarabah can be in the form of a savings account or time deposit. The following are some of the Mudarabah saving accounts.
Coopbank – Islamic savings account is offered to depositors primarily to fulfill their precautionary motives of saving money and meeting some of their transaction and investment needs where relevant. Depositors save their money for the benefit of profit-sharing for an undefined time. The profit rate to be paid is determined based on the pre-agreed profit sharing ratio and the bank’s performance during the profit payment period. Savings accounts are designed specifically to meet the needs and requirements of customers who authorize the bank to invest their deposited money. Customers can deposit or withdraw funds at any time; thus, actual profits are shared at the ratio publicized by the bank and agreed between the two and on the basis of the monthly average balance.
The account is operated by the use of a passbook exclusively prepared for the purpose. The minimum balance to open this account is Birr 500.00 (Five Hundred) only. Accounts that shortfall the minimum monthly average deposit balance of Birr 1000 (One Thousand) on profit payment period shall not be eligible for profit sharing. Customers are allowed to withdraw from their credit balance without any restriction/limitation as to its amount and timing.