What is a COI?
A COI is a product offered by DFIs and some banks. Its mechanism is the same as that of a Term Deposit; whereby the customer deposits any amount of funds with the DFI/bank for a predetermined period of time. Once that time period is over, the customer receives the principal amount plus fixed profit earned on the deposit. COI can also be used as a security instrument.
How does COI work?
- COIs essentially consist of the following:
• Interest Rate: Fixed rates, which provide a fixed profit on your principal amount.
• Tenure: The length of time you agree to leave your funds deposited with the DFI/bank.
• Principal: This is the amount you agree to deposit when you register for the COI.
• The Institution: The DFI/bank where you open your COI.
Why should we invest in COI?
Unlike most other investments, COI offers the highest level of security in that the principal amount is returned to the customer, along with a profit on investment which is fixed, due to the interest rate offered being fixed. COIs are gaining popularity with organizations that wish to get a fixed profit on their investment, without the risk of the volatile market. It also allows for organizations to diversify their investment portfolio and get the best possible returns on their various investments. Sources of funds for investment in COI may include an organization’s provident fund, gratuity fund, or any excess fund.
Contact Persons
South Team
Asad Javaid
Unit Head Liabilities-Corporate Banking
Email: Asad.Javaid@pkic.com
Contact: 0321-8249573
North Team
Shazia Bashir
Unit Head Liabilities-Corporate Banking
Email: shazia.bashir@pkic.com
Contact: (9942) 111-611-611