The Sarwa Islamic Savings Account (SISA) operates under the Shariah-compliant Wakala-bil-Istismar model, which is an investment agency arrangement.
In this structure, the account holders (referred to as the ‘Muwakkil’, or principal) appoint the ‘Wakeel’ (agent) to manage their funds on their behalf.
In the case of the Sarwa Islamic Savings Account, the account holders request the Registrar and National Savings (RNS) or Central Directorate of National Savings (CDNS) to designate the Ministry of Finance (MoF) as their agent for investing the funds in government projects or revenue-generating assets that comply with Shariah principles (referred to as the Shariah Approved Project Portfolio).
Upon receiving such a request, CDNS will instruct the MoF to establish Shariah-compliant agreements for the management of these investments, aiming to generate profits for the account holders.
Read More: New profit rate on SISA – Nov 2024
Profit and Loss in the SISA Account
Account holders will receive the actual profit derived from the investments made under the Wakala-bil-Istismar framework. The expected profit rates for these investments are calculated and disclosed by RNS/CDNS based on the proportionate share of each account holder’s investment.
If the profit exceeds the anticipated rate, the additional earnings will be considered an incentive for the MoF as the managing agent. However, if there is a loss, the account holder (as the principal) will bear the corresponding risks, with losses shared in proportion to their investment, as per the terms of the Wakala arrangement.
Account holders are free to withdraw their funds at any time, with no restrictions on early withdrawal.
Revised Profit Rates of Sarwa Islamic savings account for November 2024
Effective January 2025, CDNS has revised the profit rates for various savings schemes, including Sarwa Islamic savings account. The profit rate for the Sarwa Islamic savings account is now set at 10.44 percent (pc) , a decrease from the previous rate of 11.16pc. This adjustment reflects the overall decrease in inflation rates within the country.
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