MANAMA: Al Salam Bank has seen a three-fold jump in client deposits following the launch of a new flexible savings plan, it has emerged.

The Sharia-compliant lender’s head of retail banking Mohammed Buhijji told a virtual media briefing yesterday that the tremendous response to its new ‘Life Planning’ scheme indicates the huge appetite in the market for short-term, flexible savings solutions – which have seen rising interest since the outbreak of the Covid-19 pandemic last year.

POSITIVE

“We are pleased with the immensely positive reception Al Salam Life Planning has witnessed in the market, with an upsurge of new clients enrolling in less than a month since its launch. During these unprecedented times people have realised the benefit of taking small actions that can have a considerable future impact,” he added.

The official explained that the product was first launched last year and was improved based on customer feedback before its relaunch on June 5 this year with no upper limit set on deposit amounts.

“Designed with clients in mind particularly under the strains of ongoing pandemic, Al Salam Life Planning offers competitive profit rates on minimal investments, seeking to enable clients to better achieve long-term financial goals and take control of their finances,” he added.

“Although we have mainly focused on two life-time saving goals, early retirement and education – be it parents making investments for their children’s future education or individuals seeking to save for post-graduate degrees, Al Salam Life Planning was created to emerge as a more flexible and timely solution to easily attain future savings, no matter the purpose.

The account has a three-tier format: Classic, Gold and Platinum, giving clients the choice of monthly contribution, starting from BD30, with the mid-range set at BD80, and the top-tier starting at BD150.

Deposits can be made for a period of three to five years, and the profit rate will be in the range of three to 4.5 per cent, although it cannot be guaranteed as per provisions of Sharia, Mr Buhijji added.

All three packages under Al Salam Life Planning come with takaful life (also including Covid-19) and children’s education coverage, based on the tenure selected.

According to him, “achievable and realistic monthly contributions” were a key factor in the product design.

“Naturally, takaful coverage was a fitting offering that goes hand in hand with the account. The coverage is inclusive of educational insurance, life insurance alongside Covid-19 coverage, which a rarity in the market today,” asserted Mr Buhijji.

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