How much can you earn in a UAE Bank Deposit?

Deposit rates uae

Deposit interest/profit rates are fairly low in the UAE but since we earn nothing on our Current Account balances and get negligible returns on Savings Accounts, it does make sense to put away excess cash in a Deposit Account.

In the UAE, customers can choose from Conventional and Islamic Deposit Accounts. Conventional banks in the UAE, both local and international, have various types of interest-earning deposit accounts in their product portfolio. Local Islamic banks offer a variety of Shariah-compliant Deposit products to their customers. These Deposit Accounts earn profit rates which are declared every quarter.

Standard Term Deposits in the UAE

Our MoneyCamel team has shortlisted some of the best interest/profit rates for popular tenures like 3, 6 and 12 months across Conventional and Islamic deposit products in the UAE:

Tenure

Deposit Product

Type

Rate (%)*

3 months

ADCB Term Investment Deposit

Islamic

0.65

3 months

EIB Investment Term Deposit

Islamic

0.55

3 months

CBI Fixed Deposit

Conventional

0.5

6 months

ADCB Term Investment Deposit

Islamic

0.9

6 months

RAKBank Fixed Deposit

Conventional

0.75

6 months

CBD Attijari Al Islami Investment Deposit

Islamic

0.68

12 months

ADCB Term Investment Deposit

Islamic

1.42

12 months

RAKBank Fixed Deposit

Conventional

1

12 months

FGB Fixed Deposit

Conventional

0.85

 

* Islamic Banking profit rates are as declared for Q1-2015 & all other rates are as of May 10, 2015.

Unique Deposit Accounts in the UAE

Many banks in the UAE offer unique deposit products that earn higher interest/profit rates as compared to the plain vanilla fixed deposits. Here’s a quick look at some of them:

  • Deposits with Step-up rates – These deposit accounts offer higher rates which are directly linked to how long you save for. The most popular examples of these include Mashreq Step-up Saver Account where you can open the deposit with AED 10,000 or more and earn up to 4% p.a. for a tenure of 18 months and UNB Accelerating Rate Deposit which can you can open with a minimum amount of AED 50,000 and earn up to 5% p.a. for a tenure of 18 months.
  • Deposits with upfront interest payment – Deposits like the FGB Advantage Plus offers customers upfront interest at the time of booking the deposit. You need to deposit a minimum AED 350,000 to open this deposit and you can earn up to 1.15% for a 6-month tenure and up to 2% for a 12-month tenure.
  • Flexible Deposits – Some banks offer Flexi Deposits which allow you to withdraw from your deposit prematurely without any penalty and there are others who give you the flexibility to access your funds through an attached overdraft facility. Examples of these include EIB Flexi Term Deposit, Emirates NBD FlexiDeposit and Mashreq Un-fixed Deposit.

Deposit Accounts in your Home Country

Expats working and living in the UAE can also open deposit accounts in their respective home countries. For instance, Non-resident Indians can open Non-Resident fixed deposits in India to avail the attractive rates being offered by Indian banks. In India, NRE Deposits can earn you up to 8.5% for a 1-year tenures and higher, however no interest is paid if you withdraw before 1 year.

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