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The short answer
The Jaiz Term Deposit (JTD) is a Mudarabah account: you invest a minimum of ₦500,000 for 30 to 360 days, the bank manages the money in its investments, and gross profit is shared monthly between you and the bank at a pre-agreed ratio. There is no fixed interest rate, so ask the bank for the profit-sharing ratio and recent distributions before you invest.
A conventional fixed deposit tells you the rate up front. A Jaiz Term Deposit does not, because Jaiz Bank is a non-interest bank. Instead it tells you how profit will be shared. That one difference changes what you should ask before investing. This guide explains how the JTD works using Jaiz’s own product page, then gives you a checklist of what to confirm.
The published terms
- Product
- Jaiz Term Deposit (JTD) Account (Mudarabah)
- Minimum to open
- ₦500,000
- Tenure
- Minimum 30 days, maximum 360 days
- Return
- Share of gross investment profit, distributed monthly at a pre-agreed profit-sharing ratio
- Documentation
- An investment certificate is issued for each investment
Jaiz describes the account holder as an investor and the bank as fund manager, investing depositors’ funds in business ventures it considers profitable, socially responsible and commercially viable. It promises “the option of higher profit rates” for chosen tenures but does not publish a figure.
How Mudarabah works on a deposit
Mudarabah is a partnership between a provider of capital and a manager. On a term deposit, you are the provider of capital and Jaiz is the manager. You agree in advance what share of the profit each party takes; this is the profit-sharing ratio. At the end of each month the profit earned on the pool your deposit belongs to is calculated and divided at that ratio.
Jaiz’s FAQ contrasts this with interest-based deposits, where a fixed return is promised whatever the bank’s performance, and says the Islamic bank invests deposits on behalf of depositors and shareholders and shares the profit. The FAQ also notes that, in a Mudarabah financing, a loss is borne by the provider of funds. Ask the bank how that principle is applied to term deposits and how losses would be treated before you invest.
Worked example
Example only; the ratio and profit figures are invented to show the arithmetic. You place ₦800,000 for 90 days on a ratio of 60:40, depositor to bank. In month one, the profit attributed to your ₦800,000 share of the pool is ₦12,000. Your share is 60% of ₦12,000 = ₦7,200, and the bank keeps ₦4,800. If the next month’s attributed profit is ₦9,000, your share is ₦5,400. Over the two months you have received ₦12,600. The ratio stayed the same; the money changed because the profit changed.
| Month (example) | Profit attributed to deposit | Depositor share (60%) | Bank share (40%) |
|---|---|---|---|
| 1 | ₦12,000 | ₦7,200 | ₦4,800 |
| 2 | ₦9,000 | ₦5,400 | ₦3,600 |
| Total | ₦21,000 | ₦12,600 | ₦8,400 |
How it compares with a conventional fixed deposit
| Feature | Jaiz Term Deposit | Conventional fixed deposit |
|---|---|---|
| What is agreed | Profit-sharing ratio | Interest rate |
| Return known in advance | No | Usually yes |
| Payout timing | Monthly distribution | Often at maturity, sometimes upfront or monthly |
| Minimum | ₦500,000 (Jaiz page) | Varies by bank |
For the general trade-offs of locking money away, read fixed deposit vs savings account in Nigeria.
Risks to understand
A profit-sharing deposit moves some of the uncertainty from the bank to you. Three points are worth thinking through before you commit a large sum:
- Variable income. Monthly distributions can rise or fall. If you need a fixed amount every month for rent or fees, plan around a cautious figure rather than the best recent month.
- Loss treatment. In Mudarabah the provider of funds carries financial loss. Ask the bank how it has handled weak months in the past, for example whether it uses reserves to smooth distributions.
- Access to money. A tenure of up to 360 days is a real commitment. Keep your emergency savings in an account you can reach on demand.
Who it suits
The JTD fits savers who want their money to work under non-interest principles, can leave at least ₦500,000 untouched for one to twelve months, and are comfortable with a return that is shared rather than promised. Savers who need a figure fixed in advance, or who cannot meet the minimum, may prefer a Mudarabah savings account, which also pays monthly profit but stays accessible.
What to check first
- The profit-sharing ratio for your tenure, in writing.
- Recent monthly distributions, so you can see what the ratio has produced in practice. Treat them as history, not a promise.
- What happens if you need the money before maturity: whether early withdrawal is allowed and how profit is treated.
- Whether the deposit rolls over automatically at maturity, and on what terms.
- That your investment certificate shows the amount, start date, maturity date and ratio.
Jaiz Bank is in the NDIC’s directory of insured non-interest banks. Ask the bank how NDIC cover applies to a profit-sharing term deposit, and read NDIC deposit insurance limits for the general rules. For the wider model, see how Jaiz Bank makes money without interest.
Where Pryme fits
Pryme’s naira Savings Boxes include a Fixed Box and an Interest-free Box, which earns nothing by design; rates for the others are shown in the app. They are different products from a Mudarabah deposit. See Savings Boxes.
Questions people ask
What is the minimum for Jaiz term deposit?
Jaiz Bank’s product page lists an opening balance of ₦500,000 for the Jaiz Term Deposit (JTD).
How long can I fix money in Jaiz Bank?
The JTD runs from a minimum of 30 days to a maximum of 360 days, according to Jaiz Bank’s product page.
What is the Jaiz Bank fixed deposit rate?
There is no fixed rate. Profit is shared monthly at a pre-agreed ratio. Ask the bank for the current ratio and recent distributions for your tenure.
Does Jaiz Bank term deposit pay monthly?
Yes. Jaiz says gross profit from the investment is distributed at the end of every month at the pre-agreed profit-sharing ratio.
Sources
- Jaiz Bank: Personal Banking (account and finance product pages) · accessed Oct 2026
- Jaiz Bank: Frequently Asked Questions (Islamic banking, JaizMobile Plus, security) · accessed Oct 2026
- NDIC: Insured Banks directory (Non-Interest Banks) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.