Emirates Islamic Bank is one such bank offering exclusive Islamic banking products in the UAE, with the Emirates Islamic Bank zero balance accounts being among the most preferred savings accounts in the UAE.
Fixed deposits are distinctive saving accounts in which the amount is deposited for a fixed period and the profits/interests are paid at the time of maturity. A fixed deposit gives higher returns in comparison to normal savings account along with security against market risks. The amount in a fixed deposit account cannot be withdrawn before maturity; however, some FDs offer flexibility to withdraw funds with nominal charges.
Banks in UAE offer a variety of fixed deposit accounts, both conventional and Islamic, with variable tenure and profit rates as per customer’s suitability. However, a large number of fixed deposit schemes and their policies create a state of dilemma for customers. Therefore, PolicyBazaar brings you the list of popular fixed deposit accounts in the UAE to help you choose the one as per your needs.
Here is the list of the top five banks in the UAE that offer attractive profit rates on their fixed deposit account.
● Abu Dhabi Commercial Bank - Abu Dhabi Commercial Bank is a leading bank in the UAE that offers an interest rate of up to 3.15 percent per annum. The minimum deposit required to open a fixed deposit account in Abu Dhabi Commercial Bank is AED 5,000. The bank also accepts major international currencies like USD, EUR apart from UAE Dirham. The ADCB Fixed Deposit account offers flexible tenure that a customer can choose according to their convenience. Abu Dhabi Commercial Bank also offers overdraft facilities on investment.
● Emirates NBD - Emirates NBD offers one of the best fixed deposit accounts in the market. A minimum deposit of AED 10,000 is required in an Emirates NBD fixed deposit account. Moreover, multiple international currencies like USD, GBP, EUR are accepted apart from AED. The account offers flexible tenure and an option to withdraw the amount prematurely.
● Mashreq Bank - Mashreq Bank is one of the most famous banks for fixed deposit accounts. The bank offers an interest rate of up to two percent per annum with flexible tenure. Additionally, the bank also offers overdraft facilities and accepts major international currencies like USD, EUR, GBP apart from UAE Dirham. A fixed deposit account in Mashreq Bank requires a minimum investment of AED 10,000.
● Ajman Bank - Ajman Bank offers a high profit rate on its fixed deposit accounts. The tenure ranges from 3 months to 12 months and customers can select the same according to their suitability. However, a long-term investment pays a bigger profit. The bank also provides an auto-renewal facility where the amount gets reinvested automatically after maturity. The minimum amount required in Ajman Bank fixed deposit account is AED 10,000. The profit generated is credited quarterly in the customer’s account. Ajman Bank term deposit accepts funds in AED and USD.
● Standard Chartered Bank - Standard Chartered Bank FDs promise competitive profit rates and provide flexibility in the tenure of investments. The minimum amount required to invest in a fixed deposit account is AED 25,000. Standard Chartered Bank accepts funds in multiple international currencies apart from UAE Dirham (AED).
Apart from the above-mentioned fixed deposit accounts, given below are some popular fixed deposit accounts offered by banks in UAE that promise good returns.
|Fixed Deposit Bank||Minimum Balance Required||Currencies Accepted||Features and Benefits|
|ADCB||50,000||AED, USD, GBP, EUR||● Interest rate of up to 1.4% depending on the tenure ● Flexible tenure ● Overdraft Facility|
|ADIB||10,000||AED, GBP, USD, EUR||● Interest rates of up to 0.64% ● Flexible tenure ● Financing facility ● Free Visa Card|
|CBD||10,000||AED, USD, GBP, EUR||● Flexible tenure ● Interest rate of up to 1% ● All major currencies accepted ● Auto-renewal facilities|
|NBAD||30,000||AED, USD, EUR||● Interest rate of up to 3.98% for a long-term investment ● Flexible tenure ranging from 2 to 10 yrs|
|CITI||1000||AED, USD, GBP, AUD, CHAD, EUR||● Flexible tenure from 3 months to 9 months ● Interest rate of up to 0.25% ● Multiple currencies accepted ● Premature withdrawal with 1% charges|
|DIB||10,000||AED, USD||● Flexible tenure from 1 month to 12 months ● Interest rate of up to 1.02% ● Auto rollover ● Premature withdrawal charges of 25% on the profit earned to date ● Profit distributed quarterly|
|Noor Bank||10,000||AED, USD, GBP, EUR||● Interest rate of up to 1.4% depending on the tenure of investment ● Flexible tenure ranging from 1 month to 12 months ● Monthly and quarterly payout option ● Multiple currencies|
|HSBC||10,000 (AED) 5,000 (for foreign currency)||AED, USD, GBP, EUR||● Interest rate of up to 0.85% ● Flexible tenure ranging from 1 month to 36 months ● Multiple currencies accepted|
|Al Hilal||25,000||AED, USD, EUR, GBP||● Fully Shariah-Compliant ● Flexible tenure ranging from 1 month to 12 months ● Profit rate of 1.02% ● Monthly profit distribution|
|ENBD||10,000||AED, USD, EUR, GBP||● An interest rate of up to 2% ● Flexible tenure ● Partial withdrawal option available ● Premature withdrawal is allowed with multiple withdrawal frequencies|
While choosing a fixed deposit account, an individual should keep a few things in mind like features and benefits, interest & profit rates, flexibility in tenure, etc. Given below are key points to focus on while selecting a fixed deposit account in UAE.
●Flexibility in Tenure - An individual should choose a fixed deposit according to his plan and duration of the investment. Numerous banks offer flexible terms starting from a week up to 10 years. A long-term investment gives a bigger profit and the same must be considered while investing.
● Minimum Deposit - Each fixed deposit account in UAE requires a minimum deposit starting from AED 1000. An individual can choose a fixed deposit account according to his upfront investment. A bigger initial deposit provides a bigger profit return at maturity.
● Higher Profit Rate - Select the fixed deposit that provides a higher rate of profit on the invested funds. Comparing different banks and their profit/interest rates can make it easier to select the best fixed deposit for you.
● Flexibility to Withdraw Funds - Few banks in UAE offer the flexibility of premature fund withdrawal without additional charges, while others charge a nominal fee for early withdrawal. Choosing an account with the freedom of withdrawal is always a better option as the funds can be required in an emergency.
● Multiple Currency Acceptance - While choosing a fixed deposit account, an individual can check whether a particular bank offers a facility to accept funds in international currencies as it gives freedom to expatriates and non-residents to make easy investments. Select a fixed deposit that accepts currency which you want to use while investing.
● Banking Facilities - Many banks offer overdraft facilities, loans and financing options against the invested funds. Choosing an account with higher interest and providing other banking services will be an additional benefit.
Q1: What is a fixed deposit account?
Ans: A fixed deposit account is a type of investment made for a pre-decided duration. The interest can be calculated monthly, quarterly or annually, depending on the type of fixed deposit the bank is offering.
Q2: Can a non-resident of UAE open a fixed deposit account?
Ans: Yes, a non-resident of UAE can open a fixed deposit account in UAE subject to furnishing of required documents asked by the bank.
Q3: Can I open a fixed deposit account in foreign currency?
Ans: Yes, most of the banks in the UAE accept major international currencies like USD, EUR, GBP, etc. apart from UAE Dirham. However, acceptance of foreign currency also depends on the type of fixed deposit.
Q4: What is the tenure of a fixed deposit account in the UAE?
Ans: Banks in UAE offer a wide range of tenure starting from a week and going up to 10 years in certain cases. However, the duration depends on the type of fixed deposit and bank. A longer duration of investment provides a better profit rate.
Q5: Are the fixed deposit accounts in UAE Shariah compliant?
Ans: Numerous banks offer Shariah-compliant fixed deposit accounts in the UAE. The Islamic account follows the principle of Wakala, and the profits and losses are shared and borne according to the banking services agreement.