Wadiah Saving Account

The term Wadiah is derived from the verb ‘Wada’a, which means to leave, lodge, or deposit, where the bank is authorized to keep the funds of the depositors in his or her safe custody for safety and convenience. The depositors are allowed to withdraw their money at any time without restriction. The bank assures the money is made available upon demand and gives a full guarantee of the principal amount. The bank, with the consent of customers, has the right to use the fund in any permissible business; however, the customer does not share profit or loss from business returns. The following are some of the types of Wadi’ah accounts and deposits.

Wadia is a trust agreement whereby the bank keeps funds of depositors who want to place their funds under safe custody without any benefit. It is a non-profit sharing deposit account that the bank provides for natural and legal persons who fulfill the bank’s policies and requirements. The minimum balance to open this account should be Birr 50.00. However, a Savings account may be opened and maintained with zero balance for a period of a one-month period. The account holder should credit at least a minimum of Birr 25.00 in his/her account within one month. However, if the account is not credited in the specified period, it should be closed following the regular account closing procedure.