Partial migration of ‘Prize Account Funds’ to fixed-interest deposits amid draw suspension
- Around 2.5 billion dinars are estimated to be held in prize accounts, with partial liquidity now moving to fixed-interest deposits.
- Some banks report up to 20% of prize account funds transferring internally due to low returns on prize accounts.
- Customers shift funds temporarily to earn stable interest while prize draws remain suspended.
- Banks are preparing for a transparent resumption by upgrading audit procedures and consolidating all postponed draws.
With the continued suspension of bank prize draws since March 25 as regulators review procedures for greater transparency, some banks have reported a growing movement of customer funds from prize accounts to traditional fixed-interest deposits.
This shift, known in banking as organic internal transfers, occurs when customers move money from near-zero-interest prize accounts into deposits offering returns close to 4%, reflecting current market rates.
Although no official figures exist, prize account balances are estimated at around 2.5 billion dinars. Sources note that only a partial and likely temporary migration is occurring, as customers seek any available return while prize draws remain suspended.
In some banks, up to 20% of prize account liquidity has been redirected, while others observe lower levels depending on customer profiles, reports Al-Rai daily.
Prize account holders tend to favor the excitement of potential high-value winnings rather than fixed interest, but in the absence of draws, they logically shift funds to earn stable returns.
Banks, meanwhile, are responding by promoting fixed savings products and strengthening customer retention strategies as competition for stable deposits intensifies.
All banks with prize accounts are now working to meet regulatory governance standards and obtain approval to resume draws, including revising audit procedures and standardizing the software used for selecting winners.
Once permitted, banks plan to conduct all deferred prize draws in a consolidated, transparent manner to protect customer rights.
