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Meethaq launches unique savings plan to achieve long-term goals

MUSCAT, 27 December 2016 – Meethaq, the pioneer of Islamic banking in Oman from Bank Muscat, has launched a unique savings plan, presenting customers with the opportunity to make regular savings at their convenience to achieve long-term goals such as marriage, education, retirement or personal savings.

In keeping with Meethaq's leadership position in launching innovative products and services focused on the needs of customers, the savings plan is the first-of-its-kind aimed at helping customers realise their long-term objectives and thereby boost the savings culture in Oman.

Sulaiman Al Harthy, Deputy Chief Executive Officer – Meethaq Islamic Banking, said: “Meethaq is delighted to launch the savings plan, stemming from its commitment and focus to take the lead role in offering a suite of Shari'a based banking products and services. Aimed at promoting a savings culture and helping people realise a number of objectives, the savings plan helps customers develop prudent financial habits. Sometimes people do not realise future needs and therefore do not plan for them well in time. Meethaq savings plan helps people realise these needs and plan ahead with a small contribution every month to avoid regretting in the future."

Sulaiman Al Harthy added: “Meethaq has adopted the best practices in Islamic banking and finance worldwide to combine a robust model which protects customers and complements the Islamic banking industry. The Meethaq strategy is to attract customers through innovative Shari'a based products and services."

The Meethaq savings plan is a goal based savings product whereby customers can identify and set a goal and make monthly savings to achieve the goal. The attractive features of the savings plan include Takaful cover, direct debit option through Standing Order and emergency withdrawal facility.

Meethaq helps grow the savings for customers by investing the cumulated savings in its financing and investment products and adding the profit generated to the cumulated savings to accelerate achievement of the goal on monthly basis. Underlying the savings plan is a recurring deposit account and the contributions collected from customers are added to the RD account. The savings plan leads to cumulative growth with attractive profit rates.

The Meethaq savings plan instils the discipline of savings habit among people. The account can be opened by any individual 18 years or above of age, having a source of income to contribute to the savings plan. The 'minimum' initial deposit to start the plan is RO 50 and the 'minimum' monthly contribution is RO 50, there is no maximum limit. The minimum tenor is 3 years and it can go up to the maximum of 64 years of age of the customer.

Auto debit instruction can be signed by the account holder to debit the monthly contribution from his/her respective current or saving account maintained with Meethaq and deposit in the savings plan.

In case there is an emergency need, the account holder has the option to withdraw up to 10 per cent of the cumulated contributions from the savings plan. The remaining funds will remain intact after this withdrawal. Partial withdrawal will be allowed only one time in a calendar year.

The savings scheme entitles customers to Takaful cover. In case of natural or accidental death of customers who have signed up for the savings plan, the Takaful cover helps achieve their set goals under any circumstances.