The cost of education is on the rise and parents/students are looking for options to lighten the future financial burdens. The proposed Wadiah Student Solution Account of the Bank helps to deposit periodically smaller amounts to accumulate the required amount sufficient to cover their education fees in the long run without feeling this burden, and in a sharia compliant manner.
- Wadiah Student Solution Account is an innovative Shari’a compliant saving account designed for students.
- The account holder deposits funds in the Bank and the Bank guarantees the safety of the fund, i.e. he Bank refunds the entire amount of the deposit, or any part of the outstanding amount, when the depositor demands it,
- Designed to help families, guardians or tutors to open an account for their young children and regularly save money their;
- future education or
- post-graduate business engagements;
The “Wadiah Student Solution Account” is savings program designed to;
- encourage parents/guardians/tutors/ to save for their children’s higher education and life thereafter;
- promote the culture of saving amongst children and adults;
- Support the development of children to be the best that they can be.
- Build long life image of the Bank starting from early stages of childhood which creates long lasting partnership-mentality in them.
3. Basic Features of Wadiah Student Solution Account
- Shariah compliant – it is based on concept of al-Wadiah contract.
- Caters to the needs of parents and students, who do not want to earn interest (Ribah) on their saving.
- Purpose oriented saving plan with certain perks and benefits.
- The amount saved can be used, subject to terms and conditions, to cover education expenses like such as;
- Tuition fees, books, equipment/instruments, project works, etc.
4. Benefits Associated with Wadiah Student Solution Account
- It provides peace of mind in placing funds in a sharia compliant account.
- Convenient and easy to achieve target future deposit amount by saving small amounts regularly.
- It simplifies cash management for students and empowering them to save and invest for their future needs and cover the cost of their tertiary level of education.
- Help students to develop good money management skill/habits early
- Allow families to help students get opportunity to go the higher institution of the choice and join the field of study they like.
- The account holder will be rewarded upon opening the account
- The accountholder student may also be given a financing facility for the perusal of post graduate education, in the form of utility Murabaha
- Discounts and special offers on purchase of selected goods at selected merchants outlets
- Eligible accounts can be converted to Mudarabah investment Account which will qualify the customer for an attractive profit sharing at a pre-agreed ratios
- Hibah (gifts) – The Bank at its sole discretion, may give a rewarded/ Hibah (gift) to some top performing accounts maintained with the Bank in the forms of;
- Educational materials
- Tuition fees
- Seed money to start own business if he/she doesn’t want peruse his/her education.
5. Target Customers
- Students in primary and secondary schools
- Employees working in both government and private institutions who want to pursue higher education; and
- Parents who to want save for their children.
- Shall be Ethiopian nationals and foreign nationals of Ethiopian origin.