What Is the Allied Term Plus Deposit?
The Allied Term Plus Deposit is a conventional fixed-term deposit offered by Allied Bank Limited (ABL). You place a lump sum for a fixed period at an agreed profit rate. Enjoy consistent returns with a fixed profit rate for the entire duration of your deposit. The principal amount remains secure throughout the deposit period.
It is available at any of ABL’s 1,300+ conventional branches. You must hold a current or savings account with ABL to place a term deposit — the bank transfers profit and principal directly into that linked account.
Features and Benefits
Worked Examples Using Actual KFS Rates
The calculations below use the indicative rates from the ABL KFS. Actual profit will depend on the rate in effect at the time of your booking and applicable tax deductions.
A salaried professional deposits PKR 300,000 for 12 months, choosing a monthly profit payout to supplement income.
| Principal | PKR 300,000 |
| Tenure | 12 months |
| Indicative rate | 7.00% per annum |
| Annual profit | PKR 300,000 × 7.00% = PKR 21,000 |
| Monthly payout | PKR 21,000 ÷ 12 = PKR 1,750 per month |
| Principal returned at maturity | PKR 300,000 |
The depositor receives PKR 1,750 directly into their linked Allied PLS Savings Account or current account each month, then collects the full PKR 300,000 at year-end.
A trader parks PKR 500,000 for six months between business cycles and wants the full return at maturity.
| Principal | PKR 500,000 |
| Tenure | 6 months |
| Indicative rate | 7.60% per annum |
| Fraction of year | 6 ÷ 12 = 0.50 |
| Profit at maturity | PKR 500,000 × 7.60% × 0.50 = PKR 19,000 |
| Total at maturity | PKR 519,000 |
The full PKR 519,000 is credited to the linked account on the maturity date.
A retired individual deposits PKR 1,000,000 for three months to earn monthly income while evaluating longer-term investment options.
| Principal | PKR 1,000,000 |
| Tenure | 3 months |
| Indicative rate | 7.45% per annum |
| Monthly payout | PKR 1,000,000 × 7.45% ÷ 12 = PKR 6,208 per month |
| Total profit over 3 months | PKR 18,625 (approximately) |
| Principal returned at maturity | PKR 1,000,000 |
A parent deposits PKR 200,000 for three years, reinvesting profit at maturity to build a children’s education fund.
| Principal | PKR 200,000 |
| Tenure | 36 months (3 years) |
| Indicative rate | 5.75% per annum |
| Annual profit | PKR 200,000 × 5.75% = PKR 11,500 |
| Total profit over 3 years (simple) | PKR 11,500 × 3 = PKR 34,500 |
| Total at maturity | PKR 234,500 |
Note: This is a simple profit calculation. Actual maturity payout depends on whether profit accrues at a flat rate or is compounded. Confirm the exact calculation method with your branch at the time of booking. If using the auto rollover option, each new term resets at the prevailing rate.
Maturity vs Monthly Payout: Which Should You Choose?
The choice between maturity and monthly payout affects both the total profit received and your cash flow.
- You do not need income from this deposit during the term.
- You want the higher of the two available rates (maturity rates are consistently higher than monthly rates for the same tenure in the current KFS).
- You are building towards a specific future expense — a vehicle, home renovation or education fee.
- You rely on this deposit as a source of regular income — a common need for retirees or those between salaried positions.
- You want profit routed automatically to your savings account for reinvestment or spending.
Early Withdrawal: What You Need to Know
Breaking a term deposit before its maturity date is permitted, but the profit is adjusted downward. Per the Allied Bank Terms and Conditions for Notice/Term Deposits, profit on premature encashment is payable at the prevailing PLS savings rate, the contract rate, or the PLS savings rate at the time of booking whichever is lower.
In practical terms, this means early withdrawal almost always results in less profit than the contracted rate. If there is any possibility you will need access to these funds before maturity, the Allied PLS Savings Account or a shorter-tenure term deposit may be more suitable.
Your principal is always returned in full on premature encashment only the profit rate changes.
Eligibility and How to Book
Allied Term Plus Deposits are available to existing ABL account holders — individual and institutional. You must hold a current or savings account with ABL; the bank does not accept term deposits from non-account holders.
To book:
Tax and Zakat
Frequently Asked Questions
Q. What is the minimum amount to open an Allied Term Plus Deposit?
The minimum deposit is PKR 10,000. There is no minimum balance required to maintain the deposit once placed, and no account maintenance fee applies.
Q. Can I receive profit monthly instead of at maturity?
Yes. Monthly payout is available on all tenures from 3 months onwards. The indicative profit rate for the monthly option is marginally lower than the maturity option for the same tenure — the difference ranges from 0.05 to 0.55 percentage points depending on the tenure selected.
Q. What happens if I withdraw my deposit before maturity?
You will receive your full principal back. Profit, however, will be paid at the prevailing PLS savings rate, the contract rate or the PLS savings rate at the time of booking — whichever is lower. This is typically less than the agreed term rate.
Q. Does the Allied Term Plus Deposit automatically renew?
Yes, if you have set up the auto rollover instruction. At maturity, the deposit rolls over at the prevailing profit rate. You can amend rollover instructions up to two days before the maturity date by contacting your branch.
Q. Are term deposits eligible for Zakat deduction?
Yes, Zakat applies on term deposits as per the Zakat and Usher Ordinance, 1980. To claim exemption, submit the required declaration to your branch at least one month before the scheduled Zakat deduction date. To book an Allied Term Plus Deposit or confirm the latest indicative rates for your preferred tenure, visit any of ABL's conventional branches or use the branch locator to find one near you.