United Arab Bank Fixed Deposit Account

United Arab Bank offers excellent opportunities for investing funds, providing different types of fixed deposit accounts with high and competitive rates. These deposits can be availed for flexible tenures for suiting the preferences and needs of the account holder.

There are various kinds of United Arab Bank Fixed Deposit Accounts available in the UAE. Following are these types.

  1. UAB Fixed Deposit Account
  2. UAB Flexi-Fixed Deposit
  3. UAB Islamic Flexi Term Deposit
  4. Mudaraba Deposit

United Arab Bank Fixed Deposit Account - Features and Benefits

The UAB offers different types of fixed deposit accounts and exclusive benefits and features on these deposit accounts. Here is a rundown on the different deposits and their features & benefits.

UAB Fixed Deposit Account

The United Arab Bank offers exclusive opportunities for investing funds through its time deposit accounts. The account holder can enjoy competitive rates as well as flexible tenures that are designed for suiting their preferences and needs. Here are the benefits of this bank account.

  • Competitive Rates: The United Arab Bank Fixed Deposit Account offers competitive rates of interest to the account holder.
  • Flexible Tenure: The account can be opened with flexible tenures that are customized for suiting preferences and needs of the account holder.
  • Multiple Currency: This bank account is available in the UAE dirhams and other major currencies throughout the world.

UAB Flexi-Fixed Deposit

This fixed deposit account offers flexible deposit tenures for the convenience of the account holder. They get attractive payments across various tenures offering attractive interest rates on longer tenures. Here are the benefits of this bank account.

  • Single Currency: This United Arab Bank Fixed Deposit account can be opened only in the UAE dirhams and no other currency.
  • Flexible Tenure: The account holder has the option of choosing from different tenures of one year, two years, and three years.
  • Interest Rate: The bank offers a competitive rate of interest on this UAB Fixed Deposit Account. The account holder gets a fixed rate of 3.75 percent per annum (maximum) for the complete three years. The interest payment is done when the full withdrawal is made (predefined).
  • Overdraft Facility: The account holder can avail the facility of overdraft against this fixed deposit under lien.
  • Capital Protection: The account holder can also avail protection from the situations when the rate of interest falls or any unwanted fluctuation arises in the rate of interest market.
  • Early Termination: The account holder can avail flexibility and transparency on this UAB Fixed Deposit Account. All the rates throughout the time duration are pre-determined. The selection of this rate is done as per the exit time. No penalty is charged for early termination.   

UAB Islamic Flexi Term Deposit

This fixed deposit account is designed based on the Islamic concept of Wakala Investment. The bank account is completely Sharia-compliant. The account holder can also avail protection from the situations when the rate of interest falls or any unwanted fluctuation arises in the rate of interest market. Here are the benefits of this bank account.

  • Single Currency: This United Arab Bank Fixed Deposit account can be opened only in the UAE dirhams and no other currency.
  • Flexible Tenure: The account holder has the option of choosing from different tenures of one year, two years, and three years.
  • Interest Rate: The bank offers a competitive rate of interest on this UAB Fixed Deposit Account. The account holder gets a fixed rate of 3.75 percent per annum (maximum) for the complete three years. The interest payment is done when the full withdrawal is made (predefined).
  • Overdraft Facility: The account holder can avail the facility of overdraft against this fixed deposit under lien.
  • Capital Protection: The account holder can also avail protection from the situations when the rate of interest falls or any unwanted fluctuation arises in the rate of interest market.
  • Early Termination: The account holder can avail flexibility and transparency on this UAB Fixed Deposit Account. All the rates throughout the time duration are pre-determined. The selection of this rate is done as per the exit time. No penalty is charged for early termination. 

Mudaraba Deposit

This deposit is an unrestricted investment fixed deposit, which is dependent upon the Mudaraba Structure (profit and loss sharing) and approved by the Sharia principles. This time deposit is available in flexible deposit tenures options starting from one month to 12 months. Here are the benefits of this bank account.

  • Flexible Tenure: This term deposit is available in flexible tenure options of one, three, six, nine, and twelve months. The longer the tenure and the more the investment, the more can be the returns.
  • Minimum Balance: The account holder has to maintain 25,000 dirhams as minimum balance on this Islamic United Arab Bank Fixed Deposit account.
  • Mudaraba Contract: This deposit is based on the Islamic contract under which the Rub-ul-mal (customer) offers the capital & authorizes the Mudarib (bank) for investing the money in those activities that are in compliance to the Sharia principles. The profits and returns are earned according to the terms & conditions agreed.
  • Competitive Profit: The account holder can avail indicative competitive profits on this bank account. The profits are paid on a regular basis.
  • Investment Alternatives: The bank offers profession advice for investments to the account holder. They have various investment alternatives to choose from. They can select the alternative that chooses their needs the best.

Eligibility Criteria to Open a UAB Fixed Deposit Account in UAE

The applicant has to fulfill certain eligibility criteria for opening a bank account in the UAE. Here are a few of these eligibility requirements that the applicant has to fulfill for United Arab Bank Fixed Deposit Opening.

Fixed Deposit Account Name Eligibility
UAB Flexi-Fixed Deposit Account
  • Minimum Deposit Amount: 100,000 dirhams (on personal account) and 2,500,000 dirhams (on commercial account)
  • Maximum Deposit Amount: No maximum amount (on personal account) and 20,000,000 dirhams (on commercial account)
UAB Fixed Deposit Account
  • N/A
Mudaraba Deposit
  • Minimum Deposit Amount: 25,000 dirhams
UAB Islamic Flexi Term Deposit
  • Minimum Deposit Amount: 100,000 dirhams (on personal account) and 2,500,000 dirhams (on commercial account)
  • Maximum Deposit Amount: No maximum amount (on personal account) and 20,000,000 dirhams (on commercial account)

How to Open a United Arab Bank Fixed Deposit Account?

The procedure for opening any bank account with the UAB is as easy as it can get. The applicant looking forward to opening the account may use the below-mentioned channels to for open a UAB Fixed Deposit.

Phone Banking

The applicant can call on the customer care number of the bank for putting forward their bank account opening request.

Online Banking

The bank has a user-friendly & secure net banking portal using which the applicant can avail the option of opening a suitable bank account.

Mobile Banking

The UAB has a mobile banking app that can easily be downloaded from the App Store on iOS devices and Google Play store on Android devices. The applicant may get their accounts open through the UAB mobile application.

Branch Visit

If none of these digital banking platform suits the applicant, they can visit the nearest branch of the bank with suitable documents for getting a United Arab Bank Fixed Deposit open.

How to Close UAB Fixed Deposit Account in UAE?

You can close the fixed deposit account by putting forward the account closure request to the bank. However, before putting forward this request, the account holder must transfer their existing account balance to some other account that is opened on their name.

They can also withdraw the deposit amount for their use.

The account holder does not have to bear any penalty if they withdraw the amount prior to the maturity of the UAB Fixed Deposit. The interest/ profit payment is done on the basis of predetermined rates.

The bank may charge an account closure fee equal to 100 dirhams from the account holder.

United Arab Bank Fixed Deposit Account -FAQs

Question 1: Can I cancel my deposit whenever I want to?

Answer: Yes, you can redeem the full amount deposited under these accounts anytime you want. Redeeming the deposit prior to the maturity is subjected to the notice period (in writing) of minimum two UAE business days.

No interest will be paid out if the deposit has been canceled in the initial three months. Following three months, the interest rate is applicable as per the rates determined by the UAB. You can redeem only the full amount.

Question 2: When do I receive the interest on my Flexi-Fixed deposit?

Answer: On this United Arab Bank Fixed Deposit, the bank will pay the full amount of interest when the deposit ends, that is during the maturity. You will receive the interest amount in one payment.

In case you cancel the deposit prior to the maturity, you will receive the complete amount of interest during the cancellation time.

Question 3: I have taken early termination on my Flexi-Fixed deposit? How will my interest be calculated?

Answer: The maximum tenure for the deposit on this fixed deposit account is three years, providing you with flexibility and transparency. All the rates throughout the time duration are pre-determined. The selection of this rate is done as per the exit time.

For Example: One customer has decided to deposit 1,000,000 dirhams in the fixed deposit for three years at an interest rate of 3.75 percent per annum. After the three-years end, the customer will get 1,112,500 dirhams.

In case the customer is in need of the full amount after one year, the one-year rate is applicable (no penalty being charged). As a result, the customer will get 3.05 percent per annum for one year, that is, 1,030,500 dirhams.

Question 4: Can I get the United Arab Bank Fixed Deposit Accounts opened in multiple currencies?

Answer: The bank offers the fixed deposit accounts only in the UAE dirhams except for the normal UAB Fixed Deposit Account, which is available in various major currencies of the world.

Question 5: Is there any maximum amount of deposit on the fixed deposits by UAB?

Answer: There is no maximum amount of deposit for personal accounts; however, the maximum deposit amount on commercial accounts is 20,000,000 dirhams.

Question 6: Can I avail the overdraft facility against my fixed deposit?

Answer: Yes, you can avail the facility of overdraft against the UAB Fixed Deposit Account under lien.

Question 7: What are the minimum and maximum deposit tenure available on this bank account?

Answer: The minimum deposit tenure available on this account is one year and the maximum deposit tenure is three years. In case of Mudaraba Deposit, the deposit tenure starts from one month to 12-months maximum.

Question 8: What is the minimum amount to be maintained on the Mudaraba Deposit Accounts?

Answer: You can enjoy the benefits of this investment account if you maintain a minimum account balance of 25,000 dirhams.

Question 9: What Islamic concept is the Mudaraba Deposit based on?

Answer: The Mudaraba Deposit Account is dependent upon the Mudaraba (Profit and loss sharing) structure, which is approved by the SSB (Sharia Supervisory Board).

Question 10: Under what concept of Islamic banking does the Islamic Flexi Term Deposit fall?

Answer: This United Arab Bank Fixed Deposit is based on the Islamic Concept of Wakala Investment. Under this, the bank or Wakil plays the role of the agent on the customer or Muwakil’s behalf for investing in the deposit (investment) amount and returns along with profits expected as per the investment tenure.