Mudaraba Monthly Pension Scheme

Islami Bank Bangladesh Limited, in keeping with its welfare-oriented ideals based on Shariah Principles, has developed a deposit pension scheme named "Mudaraba Special Savings (Pension) Scheme", in order to mobilise and encourage the middle and lower middle class professional and service holders to save as per their capacity for their old age when they will normally retire from their active service life who otherwise do not like to keep and invest their savings and funds in interest bearing deposit pension schemes. Due to lack of or limited scope for savings and investment in non-interest bearing schemes, most of these individuals either consume their savings/funds or spend the same in unproductive expenditures. Thus a substantial amount of Savings/funds remain out of the production cycle.

The savings/funds of these people can play a vital role in capital formation and as a source of invisible fund for generation of income and increase of wealth of the individuals and of the nation. The scheme developed by Islami Bank Bangladesh Ltd. has already been accepted cordially by the lower and middle income group of people and thus it is expected to have great prospect in mobilization of small savings and funds for deployment in income and employment generating activities and business. In view of the above the Bank has introduced "Mudaraba Special Savings (Pension) Scheme.

Amount of deposit installments

Accounts under this scheme may be opened for monthly deposits of Tk. 100/-, Tk. 200/-, Tk. 300/-, Tk. 400/-, Tk. 500/-, Tk. 1000/-, Tk. 1500/-, Tk. 2500/- and Tk. 5000/- only. The deposit will be received on Mudaraba Principle. 

Opening of Account

  • Any bonafide citizen of Bangladesh of eighteen years or above with sound mind may open account in his name under this scheme by application in Bank's printed application form designed for this purpose.

  • The applicant shall have to be introduced by a bonafide account holder of the Branch where he intends to open account or any client of any Branch of IBBL or any respectable person known to the Bank and shall have to give two passport size photograph at the time of opening the account.

  • This account can be opened in the name of minor by his/her father/mother/legal guardian giving necessary instruction for the operation of the account.

  • Account may be transferred from one branch to another branch of the Bank at the written request of the account holder.

  • Separate account number shall be allotted for each account.

  • At the time of Opening of the account the client has to give his specimen signature in a separate card.

  • Account may be also opened by thumb impression in case of illiterate person. In such a case the introducer has to submit a suitable declaration to the effect in a form prescribed for this purpose.

  • No cheque book shall be issued against this account.

Deposit of installment

  • Under this scheme the depositor has to deposit fixed installment at the rate of his choice from the options as mentioned above (i.e. Tk. 100, Tk. 200, Tk. 300, Tk. 400, Tk. 500, Tk. 1000, Tk. 1500, Tk. 2500 and Tk. 5000) each month regularly.

  • Installment must be deposited within 6th to 25th of each month. If the 25th of any month is a Govt. holiday then installment may be deposited on following working day. 

  • Installment may be also deposited by cheque. In such case proceeds against the cheque must be collected within the 10th day of the month. If the cheque is dishonored then the cheque shall be returned to the depositor observing due formalities and the installment shall be treated as overdue. 

  • Advance Installments may be allowed to be deposited with proper arrangement between the Bank and the client in this regard. 

  • The depositor may issue written standing instruction for monthly transfer of installment amount from any other account maintained with the same branch for credit to his MSS account. In that case the client must ensure sufficient credit balance in his/her Savings or Current account and he/she has to pay a charge of Tk. 5 only for each such transfer.  

Profit Sharing and Weightage

The Mudaraba Special Savings (Pension) Scheme account holders shall share income derived from investment i.e., income from the use of the Mudaraba funds in economic activities permitted by Islamic Shariah. This includes profit, dividend, capital gains, rent and any other income derived from investment.

The account holders under this scheme along with other Mudaraba depositors shall get minimum 65% of the income derived from the deployment of Mudaraba Fund in the investment during any accounting year according to their proportion in the total investment on daily product basis applying the following weightage:

05 years Mudaraba Special Savings (Pension) Scheme: 1.10  
10 years Mudaraba Special Savings (Pension) Scheme: 1.30

Benefits of full weightage with yearly cumulating of profit shall become payable if withdrawn on maturity.  No profit shall accrue if the account is closed within one year.  In cases of premature withdrawal after one year profit shall be payable at the rate applicable for Mudaraba Savings Deposit. In case of 10 year term MSS Account encashed after 5 years but before 10 years, profit shall be payable at the rate applicable to 5 year term MSS Account for 5 (five) years and at the rate of Mudaraba Savings deposit for the subsequent period.

Payment of Pension

The pension is payable at the maturity of the term for which the account is opened either in lump sum or on monthly basis at a fixed amount as per written option of the depositor. The depositor may change his/her option in writing during the currency of the term. In case of option for receiving monthly pension the depositor shall get profit at the rate payable to Mudaraba Savings Deposits after the maturity of the account and pension will be paid until such time there remains sufficient balance in the account.

Pension amount shall be paid to the account holder as per contract and in case of his/her death to his/her nominee as per instruction given. In case of payments to the nominee/ nominees rules described below shall be applicable.

The lump sum amount of pension payable at the end of a particular term may vary due to variable rate of profit given on the yearly deposit. This will mean that the pension amount may ultimately vary and may be more-or-less than the figure mentioned in the table. If the actual amount payable becomes more than the amount shown in the table, the account holder or beneficiary will get a higher amount and contrarily if the actual amount payable ultimately becomes less than the amount shown in the table, the beneficiary will get less amount than what is shown in the table.


  • The depositor may nominate one or more persons as his nominee of the account. In case of more than one nominee, he should fix their respective share in the nomination.

  • Minors also may be named as nominee. In such a case he may also give written instruction as to who is to receive the amount in the event of his death before the attaining of maturity of the nominee (s). Otherwise payment will be made to the legal guardian approved by the court.

  • The depositor may at any time nominate a new nominee canceling the previous nominee in writing.

  • In the event of the death of the nominee during the lifetime of the depositor and before the withdrawal of the balance of the account, the nomination shall be treated cancelled.

  • The nominee (s) shall be entitled to receive the money of the account according to apportionment only after the death of the depositor. In such case there shall be no need for Succession Certificate and the matter shall be settled at the branch level.

  • The nominee has to submit the under mentioned papers to receive the balance of the account:

  • Application of the nominee /nominees/nominated guardian.

  • Death Certificate regarding the deceased depositor.

  • Identification Certificate in favor of the nominee, nominees by two valued account holders or two officers of the Bank or from the Chairman or Commissioner of local Municipality.

  • Duly attested Passport - size photograph of the nominee/nominees or nominated guardian.

  • Indemnity bond jointly executed by the nominee/nominees/nominated guardian along with two valued clients of the branch.

Automatic closure and revalidation of the account

  • The account shall be treated automatically closed if monthly installments are not deposited within the 10th day of each month. However;

  • Where a monthly installment falls in arrear within one year of the opening of the account and the depositor deposits the same within the 10th of the following month with a written application showing valid reasons for such default, the account may be revalidated for operation.

  • If after one year of opening of the account 3(three) consecutive installments are not deposited, the account may be revalidated subject to deposit of all arrear installments within 10th day of the 4th month with a written application showing valid reasons for such default.

  • The client shall get 5 (five) chances for 5 years accounts and 10 (ten) chances for 10 years accounts to revalidate his account as per procedures mentioned at sub-Para nos. 9(a) and 9(b).      

  • In case of automatically closed accounts, the depositor shall get profit applicable as per terms described at Para no. 10 below. The balance of automatically closed accounts shall be paid to the client on serving notice to him after three months from such closure through pay order or transfer to his Savings/Current Account. If no response to notice is received within a reasonable time, the Pay Order shall be sent to the account holder's recorded address by registered post and the postal expenses shall be recovered from the balance of the account.

Pre-mature closing of account

  • The client may, at anytime close the account by written application. In such cases a charge of Tk. 25/- shall be recoverable for each account closed and the following terms shall be applicable:

  • If the account is closed within 1(one) year of the opening, the client shall receive only the principal amount of deposit.

  • In case of 5(five) year term account if the account is closed after 1(one) year but before maturity of the term the depositor shall be entitled to the principal amount along with profit at the rate applicable for Mudaraba Savings Deposit.

  • In case of 10(ten) year term account, if it is closed after 5(five) years but before maturity of the term the depositor shall be entitled to the principal amount along with profit at the rate applicable to 5(five) year term MSS account for 5(five) years and at the rate of Mudaraba Savings deposit for the subsequent period.

  1.         Special Facilities for the holder of MSS Account

National Board of Revenue (NBR) may be approached for exemption of excise duty and tax on the profits earned in the account and to treat the deposit under the scheme as investment allowance as provided under income tax rules since similar schemes of NCB's enjoy such exemptions.  

Copyright ©1983- IBBL. All rights reserved.