MUSCAT, 26 February 2014 – Meethaq, the pioneer of Islamic banking from Bank Muscat, on Wednesday (26 February) launched the first Shari'a based children's savings account in Oman. The Baraem savings account aimed at inculcating a strong savings culture among children is based on Al Mudarabah principle.
Sulaiman Al Harthy, Group General Manager – Islamic Banking, said: “Meethaq is proud to take the lead in launching a special savings account for children aimed at encouraging the savings culture among them and help parents prepare for the future of children. Baraem will serve as a foundation for guiding children on prudent financial management in general and familiarise them with Islamic banking principles through the attractive savings product. Baraem offers unique privileges and facilities which can be availed by opening children's accounts in any Meethaq branches."
Baraem savings account targeted at children below 12 years can be opened by their parents. Baraem encourages children to save pocket money and cash gifts received from parents and relatives and utilise the same for gainful purposes such as buying books as well as disciplined spending for food and entertainment.
Baraem fulfills the desire of children to have their own bank accounts like their parents. While the children grow up, the Baraem savings account contributes to a secure future by encouraging them to make savings a regular habit.
On signing up, children receive a special welcome kit comprising Baraem Recognition Card which entitles them to discounts at favorite outlets and book stores. An interesting story book and educational aids which spark creativity are also presented to account holders.
When children save a certain amount of money in Baraem account, Meethaq will deposit additional money in their account. The Baraem savings thus continue to grow. More the saving, more the additional deposit from Meethaq. Notably, no transaction charges are deducted from the Baraem account.
Baraem is committed to a secure future for the account holders. In the event of the unfortunate demise of the parent who has signed up as the joint account holder, the child will be entitled for a monthly allowance of RO 200.
Meethaq has created a micro site for Baraem where children can log on to learn more about their account in a friendly environment and also play some educational games.
Aimed at motivating children, a friendly mascot named Barum is associated with the children's account to engage them in a world of fun and learning. Barum, the banking friend of children, will interact with children at popular hypermarkets and malls, guiding them on the importance of inculcating a savings habit. Barum will also keep company with children in their homes in the form of attractive coin boxes.
Al Harthy added: “Baraem is designed to help teach children handle money responsibly and encourage the savings habit from an early age. This will also make it easier to save up for a child's future."
Meethaq is well positioned to provide Islamic financial expertise to diverse segments and thereby promote the good of society as a whole. Meethaq offers a full suite of Islamic banking products. The Shari'a compliant products and services include savings account, current account, home finance, auto finance, credit card, mobile banking etc.
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. Every Meethaq product goes through the process of Shari'a compliance certification by the Shari'a Supervisory Board and is created in line with the guidelines of the Central Bank of Oman.