Kuwait Finance House (KFH) announced the launch of " Jameati Account for Higher Education", this account is a new saving & investment account specifically designed to save for higher education. The account assist parents to gradually save for their children and have a lump sum readily available to meet the higher education expenses, should it be in any part of the world. This new product comes as part of KFH’s innovative products and services.
KFH’s AGM for Banking Sector Mohammed Al-Fouzan stated that the new account combines the advantages of investment saving accounts and Islamic Takaful insurance. "Jameati Account" allow parents to target a specific amount of money which will be saved within a predetermined period to finance the high educational expenses of their children. The monthly saving is invested and profits are added to the Jameati Account. When the child becomes 18 years the targeted saving amount plus the profits will be available, where the parent and the child could decide the best university to follow higher education (should it be doctor, engineer, lawyer, business or any..) and this university could be in any part of the world.
Al-Fouzan added that the account also offers the parent a Takaful insurance cover which will be effective upon opening "Jameaty Account". If the parent is unable to continue paying the monthly saving as a result of death or permanent disability anytime during the saving period then the Takaful (insurance) company pays the unpaid amount, this guarantees the parent that his child’s higher educational expenses are covered, regardless of him been present or not. He noted that the account can be easily opened at all KFH branches, and can be managed by the client, which will allow him to change the total sum of savings at any time, in addition to changing the monthly savings to meet his conditions. The account also allows clients to pay up to 3 months in advance, and allows them to withdraw money under exceptional terms and conditions. However, the clients must be aware that any withdrawals will affect the total sum of money they seek to save; thus changing the monthly savings. Clients can close the account at any time and they will receive all the money they had saved, in addition to profits.
Moreover, Al-Fouzan mentioned that in addition to the Takaful insurance policy, "Jameati Account" has got several benefits, such as offering higher investment revenues, since 80% of the saving will be invested, profits will be distributed on the higher investment, this will pay the client a higher profit compared to other saving accounts. "Jameati Account" is Shariah compliant long-term investment.
Al-Fouzan pointed out that KFH, through this product is keen to accomplish several objectives, such as offering new products and services that develop the values of saving and investment; in addition to granting the client the opportunity to achieve the University educational target, even if the parent's funding has stopped. He went on to say that KFH is aware of the importance of education and its pivotal role in developing the society, which prompted KFH to launch this account that eases the financial burden of education.
"Jameati Account" is another unique Takaful insurance programs offered to KFH clients including travel insurance, and family protection insurance that financially protects the family against accidents that may happen in Kuwait and overseas.