Interest rate for your deposit is decided basis the interest rate grid available here
, based on the Total of deposits of all group members at the end of ‘Open period’. Below is an example:
|Total deposits* (AED)||Interest rate on your 1-year Term Deposit**|
|5,000 to 9,999||2.50%|
|10,000 to 24,999||3.00%|
|25,000 to 49,999||3.50%|
|50,000 to 99,999||4.00%|
|100,000 to 150,000||4.50%|
* Total of all deposits made by the group members during the ‘Open period’
** Above interest rate is applicable on each member’s Term Deposit Account
Group ‘Football’ is created on 01 Nov 2022 by Ahmed. Ahmed opts to deposit AED 10,000 on 2 Nov 2022. Bruce joins the group on 03 Nov 2022 and opts to open a deposit of AED 30,000 on 05 Nov 2022. Catherine joins the group and opts to open a deposit of AED 40,000 on 10 Nov 2022. Dan joined the group on 15th Nov 2022 but hasn’t deposited.
Considering that total of all members’ deposits is AED 80,000, group members are eligible for an interest rate of 4.00% (basis the above grid). On 30 Nov 2022 (i.e., end of ‘Open period’), each of the 3 members (Ahmed, Bruce, Catherine) who have deposited will get the individual Term-deposits booked at 4.00%.
Below are the details of deposits of each customer:
|Customer||Date of adding funds||Deposit amount||Interest rate %||Interest earned over 1 year tenure||Deposit booking date|
|Ahmed||02 Nov 2022||10,000||4.00%||400||30 Nov 2022|
|Bruce||05 Nov 2022||30,000||4.00%||1,200||30 Nov 2022|
|Catherine||10 Nov 2022||40,000||4.00%||1,600||30 Nov 2022|
Note: During 01-Nov to 30-Nov, customer’s funds will be placed in a temporary savings account created. Temporary savings account earns 0% interest. On 30th Nov, temporary savings account is closed, and the funds are transferred to a 1-year Term Deposit.