৳1 lakh in a 1-year Mudaraba term deposit at a 10% provisional rate is expected to pay ৳1,09,000 after source tax. If the final rate is 0.5% lower or higher, that becomes ৳1,08,550 to ৳1,09,450.
৳
= 1 lakh taka
months
= 1 year
%
Changing the term fills in an example rate (Islami Bank Bangladesh, provisional rates from 1 January 2026). Enter your bank's rate.
times
0 = no renewal. On renewal, profit after tax is added to the deposit.
Proof of return submission (PSR)
Excise duty
± 0.5%
Expected payout at maturity
৳1,09,000
After 1 year, at the provisional rate, net of tax and duty
If the final rate is ±0.5%: ৳1,08,550 to ৳1,09,450
Deposit
৳1,00,000
Gross profit (before tax)
৳10,000
Source tax (10%)
− ৳1,000
Excise duty
− ৳0
Net profit
৳9,000
Net profit per year
9%
A Mudaraba term deposit of ৳1,00,000 at a 10% provisional rate is expected to pay ৳1,09,000 after 1 year, net of tax and duty. Depending on the final rate it may be ৳1,08,550 to ৳1,09,450.
This is an estimate at the provisional rate. The bank declares the final rate after its yearly accounts close, so the payout may end up slightly higher or lower.
Example rates: Islami Bank Bangladesh, provisional rates from 1 January 2026. They may have changed since — being verified. Enter your bank's rate.
Source tax is then deducted from the profit. On renewal, the after-tax total becomes the next term’s deposit. Excise duty is charged once a year on the year’s highest balance.
Examples
1-year deposit: ৳1 lakh, 10% provisional rate, PSR available. Expected profit ৳10,000, tax ৳1,000, payout ৳1,09,000. If the final rate is ±0.5%, the payout is ৳1,08,550 to ৳1,09,450.
3-month deposit: ৳5 lakh at 9.50%. Profit ৳11,875, tax ৳1,188, and because the balance passes ৳5 lakh, excise duty is ৳500; payout about ৳5,10,188.
Term
Example provisional rate (1 January 2026)
1 month
5.25%
3 months
9.50%
6 months
9.80%
1 year
10.00%
2 years
10.20%
3 years
10.50%
What to know in Bangladesh
Rates differ by bank: every Islamic bank and Islamic window announces its own provisional rates, usually every six months.
Final rate after the year closes: declared once the bank’s yearly accounts are final; the difference is usually small.
Source tax and excise duty: apply just as for conventional deposits — 10% of profit (15% without PSR), and excise duty when the year’s highest balance is above ৳4 lakh.
Get the terms in writing: early closure, renewal rules and the profit-sharing ratio.
More: how profit is set under Mudaraba
Under a Mudaraba contract the depositor provides capital (sahib al-mal) and the bank manages it (mudarib). The investment income the bank earns in a year is shared between depositors and the bank in a pre-agreed ratio. The depositors’ share is then distributed by weightage according to term and deposit type — longer terms usually get a higher weight.
Because the real income isn’t known mid-year, the bank pays a provisional rate based on experience. If the final rate turns out higher, the extra profit is paid; if lower, it is adjusted. Treat this calculator’s result as an estimate, not a guaranteed amount.
Frequently asked questions
What is a Mudaraba term deposit?
It is an Islamic bank's term deposit. The depositor provides the funds, the bank invests them in Shariah-compliant ways, and the investment income is shared between depositors and the bank in a pre-agreed ratio. That is why it is called profit, not interest.
What is the difference between the provisional and the final rate?
During the year the bank pays a provisional rate. After the year's accounts close it declares the final rate and adjusts the difference. That is why this calculator also shows a likely range.
What are Islami Bank's FDR profit rates in 2026?
As an example, Islami Bank Bangladesh's provisional rates from 1 January 2026 were: 1 month 5.25%, 3 months 9.50%, 6 months 9.80%, 1 year 10.00%, 2 years 10.20%, 3 years 10.50%. Rates can change every six months, so confirm with your bank.
How much source tax is deducted from the profit?
The same as a conventional FDR: 10% of the profit, or 15% if you can't show proof of return submission (PSR).
What if I close it before maturity?
Most banks then pay a lower rate, or no profit for a very short period. Every bank's rules differ, so check the terms before opening.
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