Bank Al Habib Savings By Interest Tiers

Bank Al Habib Savings By Interest Tiers

Bank AL Habib is one of Pakistan’s most prominent financial institutions known for introducing innovative products catering to changing customer needs. Unlike traditional banks relying on fixed slabs, AL Habib employs a dynamic tiered structure for determining returns on savings accounts and deposits pegged to average balances. This system aims to incentivize financial discipline among account holders allowing the bank to channel concentrated funds into productive assets simultaneously.

Let’s review major Bank AL Habib savings propositions structured around innovative balance-based tiers:

AL Habib Savings Account

AL Habib Savings Account

AL Habib offers a conventional savings account paying out interest earnings to customers. Returns are structured across two broad tiers based on maintaining a minimum average balance across the year:

Tier 1: Below PKR 100,000 average balance

  • No interest payment

Tier 2: Above PKR 100,000 average balance

  • Interest paid annually

By stipulating a minimum average balance requirement to qualify for interest earnings, the product aims to inculcate financial discipline basics among account holders from the outset.

For Bank AL Habib, larger consolidated deposits reduce overall funding costs freeing up capital for commercial deployment in high-yielding avenues. Interest earnings distributed from resulting gains incentives maintaining higher balances in the tiered structure.

AL Habib Mahana Bachat Account

AL Habib Mahana Bachat Account

AL Habib has also introduced savings products targeted at priority sectors with varied cash flow patterns.

The Mahana Bachat account aimed at self-employed individuals and business owners provides two average balance based tiers:

Tier 1: Below PKR 20,000

  • Half-yearly electronic statement
  • No financial benefits

Tier 2: Above PKR 20,000

  • Quarterly electronic statements
  • Preferential pricing on AL Habib house financing

By maintaining over PKR 20,000 as the average balance threshold, account holders demonstrate financial discipline while enjoying tiered benefits like faster statements and discounted pricing on key facilities.

For Bank AL Habib, structured concentration of such funds in return boosts availability of cheap deposits deployable towards strategic goals like boosting housing finance and financial inclusion.

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AL Habib Business Savings Account

AL Habib Business Savings Account

AL Habib has also created specialized savings tailored for the fast-growing SME and business banking customer segments.

The proposition provides enterprises and companies four tiers with corresponding benefits:

Tier 1: Up to PKR 5 million

  • Standard pricing

Tier 2: Above PKR 5 million

  • 25% off locker rental charges
  • Preferential FX pricing

Tier 3: Above PKR 15 million

  • Dedicated relationship manager
  • 50% off locker rental charges

Tier 4: Above PKR 50 million

  • Priority service and operations
  • Free locker allocation

Business customers maintaining higher average deposits across quarterly cycles get access to increasing tiered benefits like fee waivers, dedicated RMs and personalized services.

For the bank, bulk business deposits concentrated in such centralized accounts provide low-cost funding pools for commercial deployment in high-yielding Shariah-compliant avenues. The resulting gains incentivize mobilizing more business savings.

Also read: Bank Alfalah Savings By Interest Tiers


Enjoy the exclusive benefits

From conventional savings to specialized business propositions, Bank AL Habib relies extensively on tiered account structures promising differentiated value. Minimum thresholds ensure skin-in-the-game for customers while allowing the bank focused deployment of consolidated funds towards strategic ends in a profitable, ethical framework. In doing so, dynamic interest rate tiers allow AL Habib to align wider goals around priority lending with attractive returns tailored to suit diverse customer segments.

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