Best Fixed Deposit Accounts in the UAE for 2024

A fixed deposit is basically a type of term deposit investment. You, as an investor, deposit the amount for a fixed period — the bank pays interest or profit on these funds. To explore the latest fixed deposit accounts in the UAE and find out more about their unique features and benefits, keep on reading the article below.

How Do Fixed Deposits Function? - Quick Overview

As mentioned earlier, fixed deposits (FDs) present a safe way to save and grow your funds. 

When you open an FD with a bank, you deposit your funds for a specified period. The interest or profit on the funds is paid at the time of maturity. This additional amount is subject to the fixed deposit interest rate or profit rate.

Several UAE banks, however, go a step further and offer tailor-made fixed deposits that allow partial or premature withdrawals during emergencies without any charges.

List of the Best Banks for Fixed Deposits - 2024

Being a fast emerging economy, UAE focuses on the versatility of banks to offer custom-made fixed deposit solutions for better returns. Numerous banks offer early withdrawal or partial withdrawal in times of emergencies without levying any charge. Following is the list of the latest fixed deposit schemes in the UAE.

Note: The profit/best rates in UAE may change as per the bank’s discretion.

Best FD Rates in the UAE

The best fixed deposit rates in the UAE range from 0.25% to 3.98%. These rates vary from bank to bank and depend on several factors including - 

• Invested amount 
• FD tenure
• Age of the applicant
• Economic conditions  
• Demand and supply conditions

Best Fixed Deposit Accounts in UAE

Here is the list of which banks are best for fixed deposits in the UAE in terms of features, profit/interest rates and ease of application.

• Emirates NBD Fixed Deposit Schemes - Emirates NBD offers one of the best fixed deposit interest rates in UAE. An individual is required to deposit a minimum of AED 10,000 to open a fixed deposit. Moreover, it accepts multiple currencies such as AED, USD, GBP, EUR. The account also offers flexible tenure of investment and the option to withdraw the amount prematurely.
• Standard Chartered Bank Fixed Deposits - Standard Chartered Bank promises competitive interest rates on the fixed deposit accounts and provides flexible tenure of investment. An individual can open the bank account in major international currencies with a minimum deposit of AED 25,000.
•  Abu Dhabi Commercial Bank Fixed Deposits - Abu Dhabi Commercial Bank is one of the leading banks in UAE and offers an interest rate of up to 3.15 percent per annum on its fixed deposits. The bank accepts major international currencies like USD, EUR apart from UAE Dirham. A minimum deposit of AED 5,000 is required to open a fixed deposit account. Abu Dhabi Commercial Bank Fixed Deposit comes with an overdraft facility and flexible tenure of investment.

Advantages of Fixed Deposit Accounts in UAE

The fixed deposit accounts in UAE come with numerous advantages. The FDs are safe and fetch you set interest rates despite market instability. Following are some of the advantages of opening a fixed deposit scheme in the UAE.

• Safety and Security of Funds - The fixed deposits offer complete security of the funds and pay interest without getting influenced by the market performance. Hence, these accounts are completely risk-free.
• Finances and Loan against the Fixed Deposits - Numerous Banks offer financing and loan facility against funds in the fixed deposit account. Sanctioning and approval of loans also becomes very easy.
• Overdraft Facility against the Fixed Deposit - Banks in UAE also offer an overdraft facility of up to 95% against the fixed deposits. The account holders can withdraw funds using the overdraft facility.
• Life Insurance Facilities - Numerous banks offer life insurance to individuals holding a fixed deposit account. E.g., RAK Bank offers life insurance to its customers who hold a RAK Bank Fixed Deposit or Fixed Deposit Plus Account.
• Other Banking Facilities - Opening a fixed deposit account gives access to numerous banking facilities like online access to funds anywhere and anytime. In addition, few banks offer credit cards against fixed deposits that include rewards and benefits on each purchase, thereby providing extra benefits.

Fixed Deposits are one of the most popular financial tools to grow your savings with safety and security. However, before choosing a fixed deposit account, the individual must go through all the latest fixed deposit schemes in UAE and select an account according to his/her financial needs.