The Central Directorate of National Savings (CDNS) offers a range of investment options that adhere to Sharia principles, providing an ideal avenue for individuals seeking interest-free (Riba-free) savings and investments. In response to public demand, CDNS has introduced a dedicated Islamic window, named Rafa National Savings (RNS), which promotes a range of Shariah-compliant savings and investment opportunities.
One of the prominent offerings under this window is the Sarwa Islamic Savings Account (SISA). This account is structured around Wakala-bil-Istismar, a Shariah principle where a principal (Muwakkil) appoints an agent (Wakeel) to invest funds on their behalf. In the case of SISA, account holders act as principals and request that the Ministry of Finance (MoF) be appointed as the agent to manage investments in government-approved, Shariah-compliant revenue-generating projects.
How the Sarwa Islamic Savings Account Works
Under SISA, account holders delegate their funds to the MoF to invest in government projects or other assets that generate returns in accordance with Islamic law. The MoF enters into Shariah-based arrangements to manage the funds and generate profits for the account holders.
Profit and Loss on SISA
The profit earned by the account holder is directly linked to the performance of the investments made under the Wakala-bil-Istismar arrangement. The anticipated profit rates are disclosed by RNS/CDNS, and they are based on pro-rata investments in the relevant government projects. If the actual profit exceeds the anticipated rates, the surplus is considered an incentive for the MoF as the agent. On the other hand, if the investments result in a loss, the account holder, as the principal, bears the proportionate risk associated with the actions of the agent (MoF).
Premature Withdrawal
One of the benefits of the Sarwa Islamic Savings Account is the flexibility it offers to account holders. They can withdraw their funds at any time without facing any penalties.
Updated Profit Rate for Sarwa Islamic Savings Account – November 2024
CDNS has recently revised the profit rates for various savings products, including the Sarwa Islamic Savings Account (SISA), effective from November 2024. The profit rate for SISA has been adjusted to 11.16%, a decrease from the previous rate of 14.25%. This change reflects the reduction in inflation rates within the country.
For more details on how to invest in the Sarwa Islamic Savings Account or other Shariah-compliant options offered by CDNS, individuals can visit the official CDNS website or visit an authorized branch.
