Islami Bank’s Waqf Account: A Path to Continuous Charity

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Extending a helping hand to serve humanity is one of the noblest responsibilities in human life.

Islami Bank Bangladesh PLC offers the Mudaraba Waqf Cash Deposit Account (MWCDA), a simple form of Sadaqah Jariyah (continuous charity) to inspire affluent members of society to fulfill this duty. In this voluntary account of a permanent nature, the principal amount remains preserved and the income generated is utilized for the welfare of humanity. Essentially, the funds donated by wealthy and well-off individuals through this account are invested in Shariah-compliant profitable sectors and the resulting profits are spent on various welfare-oriented initiatives.

Applicants can open the account with a minimum deposit of Tk 1,000, either in a lump sum or in installments. Once the declared amount is fully deposited, the Waqf donor is issued a Cash Waqf Certificate.

The funds in this account are managed based on Mudaraba principles. The profits can be directed to Shariah-compliant sectors chosen by the bank or as per the account holder’s preference. The profit can be distributed or transferred to one or more savings/current accounts maintained at the respective branch. Profits are disbursed annually on the account’s anniversary but if the customer prefers monthly profits, they are provided at provisional rate. The account holder may also choose to use the profits for designated welfare activities.

Any Bangladeshi citizen aged 18 or above can open this account and deposit funds in installments.

Applicants need to submit two recent passport-sized photographs and a photocopy of their National ID, valid passport or driving license to open the account at any branch, sub-branch or agent outlet of the bank. Additionally, partnerships, trusts, clubs, societies, cooperatives and educational institutions can also open this account by providing required documents such as partnership deeds, trade licenses, deeds of trust and tax certificates. Parents or guardians can open this account on behalf of minors as well.

Customers can arrange for monthly installment deposits directly from their personal current/savings account as per their instructions. Installments can also be deposited through online banking, iBanking and the CellFin app. Additionally, foreign currency deposits are allowed in the Waqf account.

In the event of the account holder’s death, the profits from the Waqf account will continue to be spent in the sector they designated. If the deposited amount is less than the declared sum, the heirs of the deceased can deposit the remaining amount. – Press release