Fixed Deposits are a safe investment as compared to many other investment streams that pose a high risk. Deposit interest/profit rates in the UAE are fairly low but are still better than earning nothing in a savings account. Customers in the UAE are able to choose from Conventional and Islamic Deposit Accounts. Conventional bank accounts are interest-earning deposit accounts whereas Islamic Accounts offer Shariah compliant deposits that are declared on quarterly basis.
Fixed deposits accounts are available in various tenures. You can keep a deposit from 1 month to 3 years.
For a 1-3 month deposit, some of the best Banks are mentioned below:
- ADCB Fixed Deposit Account has an interest rate of 0.65% and is distributed on quarterly basis. This account requires a minimum balance of AED 5000, which can be deposited in different currencies such as AED, USD, Euro or GPB.EIB (Emirates Islamic Bank) Time Deposit Account has an interest rate of 0.55% based on quarter ending March 31,2015. This account requires a minimum balance of AED 10,000 which can be deposited in currencies such as AED & USD. This account is Shariah Compliant and can also be opened for minors as well as businesses.
- CBD (Commercial Bank of Dubai) Attijari Al Islami Investment Deposit Account has an attractive interest rate of 0.52% and is distributed on quarterly basis. The minimum balance required is 10,000. This account allows premature encashment and is available in AED & USD.
The best interest rates for a 6 to 12 months tenure are from the following banks:
- RAK Bank Amal Term Investment Deposit Account is Shariah Compliant and has declared a profit rate of 0.68% for 6 months and 0.9% for 12 months ( both rates are Q1,2015) Profits for this account are declared and credited on quarterly basis. The account requires a minimum balance of AED 10,000 and can be deposited in various currencies such as AED, USD, GBP & EUR.
- ADIB Recurring Investment Account is Shariah Compliant and has declared a profit rate of 0.74% for q1, 2015. Minimum balance needed for this account is AED 10,000 and the profits are shared on quarterly basis.
- HSBC Term Deposit Account has an interest rate of 0.58% for a 9-month tenure. This account is pertinent to those customers who do not need immediate access to their money and who would like to earn a higher rate of interest than compared to a savings account. The minimum balance required for this account is AED 10,000 and it can be deposited in AED, USD or GBP.
The best rate on an NRI Account for a 1-year tenure would be from the following banks:
- AXIS NRE Fixed Deposit Account has an interest rate of 8.30%. The minimum deposit in foreign currency needed is 10,000 and withdrawals are permitted before maturity.
- HDFC NRE Deposit Account has an interest rate of 8.5%. The minimum deposit in foreign current needed is 25,000. It is important to know that if there is a premature withdrawal made before 1 year, no interest will be paid. After 1 year the rate applicable will be lower compared to the base rate of the original tenure.
- Kotak NRE Fixed Deposit Account has an interest rate of 8.5%. The minimum balance required to deposit is 50,000. No premature withdrawal of deposits is allowed till maturity and no interest is paid to NRE TDs staying less than 1 year. For term deposits with tenure of 181 days, interest will be calculated at maturity as Simply Interest.
Conduct your own search to get more details on interest rates offered by various Banks