Terms and conditions for KIB Term Deposits

1. Deposits subject to stipulations hereof shall be invested pursuant to the provisions of Islamic Shari’a and regulations decided by Central Bank of Kuwait for "Mudarabah" contract. "Mudarabah" is partrership between "Rab Almal”(the customer) and "Almudarib”(the bank).
2. Credit balance allocated for investment in this open fixed investment deposit is considered Customer’s Capital for “Mudarabah” contract with the Bank. The Customer’s pursuant to such contract authorizes the bank to invest this amount in “Mudarabah” operations as the Bank find it reasonable and in the interest of both parties (The Customer & the Bank), provided the Bank gets a pre-decided percentage in the “Mudarabah” contract 20% of the realized profit. In case of loss, the Customer shall assume their share of loss equivalent to his capital invested in “Mudarabah” operations. The credit balance in this account, which is not involved in investment operations, shall be considered “Qard Hassan” from the customer to the bank.
3. Unconditional fixed investment deposits (one month – three months – 6 months – one year – one year and half – Two years) shall be renewed automatically at the same tenor unless the Bank is notified otherwise.
4. The Bank Issues deposit certificates / notification to the Customers who have unconditional fixed investment deposits indicating date of contract, amount of investment deposit, maturity date, and the tenor of such deposit.
5. Customer may not withdraw or break their 3 or 6 or 12 or 18 or 24 months investment deposit prior to maturity date agreed upon. In case the customer has the desire to withdraw or break the deposit prior to maturity date and after one month from opening investment deposit account, and upon Bank’s approval. The deposit shall be treated as saving account regarding loss and profit until withdrawing or breaking date. Therefore, the Bank shall discount the difference between distributions of profits and previous tenors (if paid) and the due profits in saving accounts against such period. As for the deposits opened in the main foreign currency adopted by the bank, such processing shall be applied on deposits invested more than three months.
6. Customer or his / her legal representative may recall the deposit amount as agreed upon maturity date.
7. Notification regarding investment deposit certificate shall be issued in the name of Customer, and ownership of deposit may not be transferred in the name of another person.
8. Investment deposit funds shall be invested on the basis of common “Mudarabah” and the Bank may have the discretion to decide all action taken to realize joint interest including type and form of investment.
9. Terms deposits profit distribution mechanism will be as follows:
Term deposits with terms of 1 month and 3 months, profit returns will be paid on maturity date based on the last announced rate
Term deposits with terms of 6 months, 1 year, 1 year and half and 2 years, profit returns will be paid every 3 months based on the last announced rate
10. Profits of investment deposits, in case realized, shall be deposited in the account.
11. Both the customer and the bank shall be exempted from any claims other than the profits distributed in accordance with the mechanism specified in Clause No. (9). This is a final acknowledgment by the two parties and an exemption from any responsibilities in this regard.
12. Investment deposit funds shall be invested on the second working day if it is in the main currencies adapted by Kuwait International Bank except the Japanese Yen, which will be after two working days of deposit date, and pursuant the following investment percentage:

Type of Deposit Investment Percentage Minimum Amount Deposit
One month 65% KD 1,000
Three months 70% KD 1,000
Six months 75% KD 1,000
One year 90% KD 1,000
One year and a half 95% KD 1,000
Two years 99% KD 1,000

The Bank may amend such percentages after notifying the customer through written notice or electronic channels available, and in case no objection received within two weeks, then amendment shall be effective.