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Overview of Fixed Deposit Account in UAE

Several banks in the UAE provide custom-made fixed deposits with partial or early withdrawal options. These banks enhance fixed deposits for the advantage of their clients on a regular basis. The latest fixed deposit accounts in the UAE are listed in this article, along with their distinctive characteristics and perks. By writing this blog Dhanguard will assist you and guide you regarding Fixed Deposit Account in UAE.

What do you mean by Fixed Deposit?

Fixed deposits are one of the safest methods to save since they are not subject to market risk. Banks in the UAE provide a wide range of traditional and Islamic fixed deposit programmes with adjustable terms and reasonable profit/interest rates. A fixed deposit is a type of term investment in which the investor deposits money for a certain length of time and the bank pays interest on it. The interest that has accrued on the money is paid upon maturity.

Characteristics of a Fixed Deposit

To understand what a fixed deposit is, you must first understand its primary characteristics. The following are the most important:

Guaranteed Profits

A fixed deposit's returns are guaranteed. You will receive the same rate of return that was agreed upon when the FD was opened. This is not the case with market-led investments, which provide returns depending on market interest rate swings. Even if interest rates fall, you will get the same rate of interest that was agreed upon. As a result, the fixed deposit is more secure than other types of investments.

Interest Rates

A fixed deposit's interest rate fluctuates depending on the period you pick.

Provides a variety of Tenure Options

FDs with terms ranging from 8 days to 10 years.

Investment Return on Investment

The amount of interest you earn on a fixed deposit is determined by the FD's maturity duration or tenure. You will receive a greater interest rate if you have a longer tenure. Furthermore, the returns on your investment are determined by whether you want to receive interest on a regular basis or reinvest the money, which is known as a cumulative FD. With this FD, you have the benefit of compounding.

Loan Secured by a Certificate of Deposit

If you need money right away, you can take out a loan against your fixed deposit. This prevents your FD from being closed prematurely.

Best Fixed Deposit Account in UAE

In terms of features, profit/interest rates, and convenience of application, here is a list of the best performing fixed deposit account in UAE.

Fixed Deposit Schemes at Emirates NBD

Emirates NBD have one of the finest fixed deposit interest rates. To open a fixed deposit, an individual must deposit a minimum of AED 10,000. It also takes a variety of currencies, including AED, USD, GBP, and EUR. The account also allows you to invest for a longer period of time and withdraw funds.

Fixed Deposits at Mashreq Bank

Mashreq Bank is one of the most well-known banks for term deposit investments. The bank provides a variable interest rate of up to 2% per year with a customizable tenure choice. Apart from the UAE dirham, the bank also offers an overdraft facility and accepts major currencies such as USD, EUR, and GBP. To start an account, a minimum deposit of AED 10,000 is required.

Fixed Deposits at Standard Chartered Bank

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

Fixed Deposits at Abu Dhabi Commercial Bank 

Abu Dhabi Commercial Bank is one of the main banks in the UAE, with fixed deposit rates as high as 3.15 percent each year. Apart from the UAE dirham, the bank accepts major foreign currencies such as USD and EUR. A fixed deposit account in UAE requires a minimum deposit of AED 5,000 to open. Fixed Deposits from the Abu Dhabi Commercial Bank come with an overdraft capacity and a variable investment term.

Benefit of Fixed Deposit Account in UAE

Fixed deposit account in UAE offer a number of benefits. FDs are safe and provide you with fixed interest rates despite market volatility.

Some of the benefits of opening a fixed deposit programme in the UAE are listed below.

Fixed deposits provide total protection of money and pay interest without being impacted by market performance. As a result, these accounts are risk-free.

Finances and Loans against Fixed Deposits

Following are the points

  • A number of banks provide financing and lending options for fixed deposit money. Loan sanctioning and approval became a lot easier.
  • Overdraft Facility Against Fixed Deposits - Banks in the UAE can provide an overdraft facility against fixed deposits of up to 95%. The overdraft feature allows account holders to withdraw funds.

Life Insurance Options

Many banks provide life insurance to people who have a fixed deposit account. Customers who have a RAK Bank Fixed Deposit or Fixed Deposit plus Account, for example, are eligible for life insurance.

Other Banking Options

Opening a fixed deposit account in UAE allows you access to a variety of banking services, including online access to funds at any time. Furthermore, a small number of banks provide credit cards tied to fixed deposits that feature incentives and advantages for each purchase, resulting in additional perks.

Conclusion

Fixed Deposits are one of the most often used financial instruments for growing your funds in a safe and secure manner. However, before selecting a fixed deposit account in UAE, an individual must review all of the current fixed deposit plans in the UAE and choose an account that meets his or her financial needs. If you want to know more about fixed deposit Dhanguard is here to assist you and guide you. Connect with Dhanguard and gather some more details regarding fixed Deposit account in UAE.

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Frequently Asked Questions

You should go for a FDs over mutual funds and investments options similar to it, because of the guarantee of return on investment and safety of your funds. Since they are opened with a bank, they provide safety to your investments.

Usually the interest rates varies from 6-8%.

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