Which Bank is the Best for Fixed Deposit in 2022 in Dubai?

By Sakshi Srivastava - 09 Mar 2022 Last Updated: 20 May 2022
Which Bank is the Best for Fixed Deposit in 2022 in Dubai?

A fixed deposit is a financial instrument offered by banks or financial institutions in which customers can deposit funds and earn high interest rates. This account, also known as a term deposit, is opened for a set period of time determined by the bank and the account holder.

When funds are deposited with a bank, the account holder begins to earn interest based on the duration of the deposit. In general, the main feature of an FD is that the account holder cannot withdraw funds before maturity, but they can do so after paying a fee.

Why Should You Open a Fixed Deposit Account?

While fixed deposit interest rates are higher than savings account interest rates, there are many other reasons why an FD account is required.

The following are some of the benefits of opening an FD in the UAE.

Guaranteed Returns

Fixed deposit investments provide guaranteed returns. In general, the rates of return are higher than those offered by a savings account. The returns, on the other hand, may vary depending on the duration of the deposit.

Variable Timeframes

Fixed deposits in the UAE allow you to choose the term of your deposit. Every bank has a minimum and maximum tenure. Within this minimum and maximum range, the applicant can select the duration of their deposit.

Risk-Free Investment

This deposit is one of the most secure investments available in the UAE. As a result, it is ideal for those who do not want to put their money at risk.

Specified Savings

A fixed deposit account is a type of account that assists the account holder in developing a habit of proper saving.

Advantages and Drawbacks Fixed Deposit Account

Some key characteristics and benefits of fixed deposits in the UAE are listed below

A fixed-term investment

(FD) is a pre-determined investment that lasts for a specific period of time. Only after the end of this period will the account holder be able to withdraw funds from this account. They can, however, make early withdrawals by paying a fee to the bank.

Increased Interest Rates

One of the advantages of FD is that the account holder can take advantage of the best fixed deposit rates in the UAE. Although the liquidity in these accounts is lower, the interest rates are higher when compared to other accounts.

Aids in the Selection of Loans

Liabilities can arise as a result of uncertainties, and the account holder may be in desperate need of cash at the time. In this case, they can take out a loan against their deposit account.

Automatic Renewal

The majority of banks in the UAE offer the option of automatic renewal on these term deposits. The FD is automatically renewed after maturity using this option, eliminating the need for the account holder to do so manually.

Profit Distribution

Profits or interest earned on fixed deposits are distributed to account holders on a monthly, quarterly, semi-annual, or annual basis. The frequency with which profits are distributed is at the discretion of the banks.

Availability of Accounts

A large number of banks in the UAE allow customers to open joint FD accounts. Not only that, but these deposits are also available to minors. The parties who can use these accounts are as follows.

  • Individuals (including minors)
  • Joint Stock Companies
  • Sole Proprietorship
  • Partnership
  • Limited Liability Companies

Best Banks for Fixed Deposit Account

As a rapidly developing economy, the UAE places a premium on banks' ability to provide custom-tailored fixed deposit solutions in order to maximize returns. In times of emergency, many banks offer free early withdrawal or partial withdrawal. The following is a list of the most recent UAE fixed deposit schemes.

Emirates NBD Fixed Deposit Schemes

Emirates NBD have one of the best fixed deposit interest rates. To open a fixed deposit, an individual must deposit a minimum of AED 10,000. Furthermore, it accepts a variety of currencies, including AED, USD, GBP, and EUR. The account also provides flexible investment tenure as well as the option to withdraw the funds early.

Fixed Deposits at Mashreq Bank

Mashreq Bank is one of the most well-known banks for term deposit investments. The bank offers an annual interest rate of up to 2% with the option of a flexible term. In addition, the bank provides overdraft services and accepts major currencies such as USD, EUR, and GBP in addition to UAE Dirham. To open the account, a minimum deposit of AED 10,000 is required.

Standard Chartered Bank Fixed Deposits

Standard Chartered Bank offers competitive interest rates on fixed deposit accounts as well as flexible investment terms. With a minimum deposit of AED 25,000, an individual can open an account in major international currencies.

Fixed Deposits at Abu Dhabi Commercial Bank

Abu Dhabi Commercial Bank, one of the leading banks in the UAE, offers fixed deposit interest rates of up to 3.15 percent per annum. Apart from the UAE Dirham, the bank accepts major international currencies such as USD and EUR. To open a fixed deposit account, a minimum deposit of AED 5,000 is required. Abu Dhabi Commercial Bank Fixed Deposit includes an overdraft facility and flexible investment tenure.

Criteria for Eligibility and Documents Required to Open a Fixed Deposit Account

In order to obtain a fixed deposit in the UAE, the applicant must meet the basic eligibility requirements established by their bank. Different banks may have different requirements for eligibility.

Some of these requirements are listed below.

Residence

Some banks in the UAE only allow UAE residents to open bank accounts with them. These UAE residents will be required to provide a valid proof of residency in order to obtain an FD from the bank.

Amount of the Minimum Deposit

The bank has established a minimum deposit amount. The applicant must deposit at least this amount into a bank account.

Age Restrictions

To be eligible for an FD, the applicant must be of a certain age. This age limit is also set at the discretion of the bank in question

Conclusion

Fixed deposits are one of the most popular financial instruments for growing your savings in a safe and secure manner. However, before selecting a fixed deposit account, the individual must review all of the latest fixed deposit schemes in the UAE and select an account that meets his or her financial needs.

Our talented and professional employees at "Dhanguard" work hard to provide solutions to your problems as well as alternatives. To learn more about the various services we offer, please contact us – we will be happy to assist you.

By Sakshi Srivastava

09-Mar, 2022

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