What are the Bank Interest Rates in UAE? Things You Need to Know

bank interest rates uae

There are various types of bank interest rates in UAE. It can be tedious job indeed to choose the bank which is offering the most attractive deal. You want the highest interest rates while choosing savings bank account and the lowest possible rate while taking a home loan.

Let us explore the different bank interest rates in UAE.

Popular Interest Rates

Type

Interest

Savings Accounts

0.20% to 3.33%

Fixed Deposits

0.1% to 2%

Home Loans

starting 2.24%

Personal Loan

2.55% to 34.99%

Savings Account Interest Rates

  • Savings Accounts generally calculate interest on a daily basis.
  • The interest payments are given on a monthly or quarterly basis depending on the bank policy.
  • We have complied a list of some of the leading banks of UAE, with high-interest rates on savings bank accounts.
  • To know more about any savings scheme follow the link in the table to know more.

Bank

Interest Rate

Minimum Balance

0.2%

3000 AED

0.2% to 0.75%

0 AED

0.31% to 0.33%

5000 AED

0.25% to 0.75%

3000 AED

0.55% to 1.25% 

3000 AED

0.60%

3000 AED

0.5% to 1.5%

--

3.33%

10,000 AED

1.10%

0 AED

Fixed Deposits

The interest rate on Fixed Deposits depends on numerous factors:

  1. Term of Deposit

    • Interest Rates are typically higher for long term deposits.
    • Deposits made for less than a year will earn lower interest rates.
  2. Amount of Deposit

    • The total amount of deposit made will also help determine the rate of interest.
    • Very low amounts will attract lower interest rates.
  3. Depositor

    • Some category of individuals like senior citizens, bank staff etc. can get some additional advantages.

Check some of the top fixed deposit interest rates and other details here.

Bank

Interest

Term

Minimum Amount

Penalty on Premature Withdrawl

2%

18 months

10,000 AED

0.5% for 12 months

0.1% to 0.7%

1 Month to 3 years

25,000 AED

Yes, charged on interest accured.

0.1% to 1.75%

7 days to 5 Years

10,000 AED

1%

upto 2%

Minimum 1 Month

10,000 AED

__

0.1% to 1%

3 to 24 Months

10,000 AED

__

Home Loans

Since a mortgage loan is the biggest loan most people would ever take out, it’s essential to think of all of the factors involved in purchasing a house. Mortgage companies demand interest on the sum they loan to homeowners depending on the purchaser’s credit. You will need bank statements of the last 6 months,  your passport, visa and salary details, etc.

Bank

Interest Charged (Salaried)

Tenure

Maximum Loan Amount

starting 2.69%

upto 20 million AED

starting 2.5%

upto 25 years

upto 18 million AED

starting 2.24%

upto 25 years

upto 20 million AED

starting 2.49%

upto 25 years

upto 15 million AED

starting 3.69%

upto 25 years

--

Please note that the rate of interest is variable and depends on your particular situation. For example, as per the Rakbank bank in UAE, the interest rate for salaried customers is 2.69% and for businesspersons is 3.49%.

Various other conditions like minimum salary, minimum tenure of business, nationality, age etc. will decide the eligibility for loan. The average interest rate on a mortgage loan has gone up and down over the last 40 years. Although buying a home is a wonderful example of a monetary target. It’s essential to perform your homework before taking out a mortgage loan to see if now this is the right decision to make.

Personal Loan

The different bank and financial institutions makes it easy for foreigners and UAE citizens to obtain loans. You will get clearance without any problems if you have all of the necessary documentation and meet the eligibility requirements. The maximum tenure for the repayment of loan is generally 48 months.

Hereunder, is a brief overview of the interest rates the different personal loans in UAE.

Bank/Financial Institution

Interest Rate

Amount

Minimum Salary Amount

Salary Transfer

starting from 6%

upto 4 million AED

3,000 AED

Not Required

starting from 3.99%

20 times the Salary

3,000 AED

Required

starting from 6%

upto 1 million AED

5,000 AED

Required

starting from 2.55%

upto 4 million AED

10,000 AED

Not Required

--

upto 3 million AED

8,000 AED

Required

15.99% to 34.99%

--

5,000 AED

Not Required

Please Note, that Salary Transfer to the institution from which you are availing the loan is mandatory in some cases while others are more flexible.

Business Loans

Abu Dhabi Commercial Bank is one bank amongst others that gives out business loans.

This loan will help the lender with a variety of business requirements, including equipment resources, operating expenses, commercial properties, and much more.

ADCB’s business loan has the following characteristics:

● A loan equivalent to 3.5 million AED is available.
● Period to approve: 7 days
● The fee of 2% for processing
● Interest rate is 17%.
● The repayment term is upto 48 months.

So, you now have an idea about the latest prevailing bank interest rates in UAE.

Tip to get the Best Deal

Whenever you are thinking about investing or taking a loan, the best way is to write an e-mail to various banks with your requirements and position like salary, nationality, etc and enquire about the best rate of interest they can provide.

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