The Hong Leong Junior Savings-i is a capital-guaranteed deposit account that gives you a fixed return, and adopts the Shariah principle of *Tawarruq. This account is linked to Junior Fixed Deposit-i (JFD-i) and comes with a Junior Reloadable Debit Card-i (JDC-i) that helps parents monitor their children’s spending, and educate them on financial management too.
“Tawarruq” refers to an arrangement which consists of multiple sale and purchase transactions. With this product, the Customer(s) will purchase the Commodity at Purchase Price from a supplier and thereafter, sell the Commodity to HLISB at Selling Price on the basis of Murabahah (sale with disclosed cost and mark-up) which shall be paid to the Customer(s) at the end of the Tenure (after taking into consideration any rebates, if any). HLISB shall thereafter sell the Commodity to a third party on cash basis. Apart from that, Tawarruq can happen in the form of Musawamah whereby the Customer(s) sell the Commodity to HLISB on the basis of Musawamah. “Musawamah” means a sale contract without the disclosure of the asset cost price and profit margin to the purchaser.