Selecting the best savings accounts in the UAE can be tricky because of the crowded and competitive banking environment. With 22 local and 30 foreign banks, this high competition leads to attractive offers for savings accounts, but it can also create confusion about which one to choose.
This guide explores the top savings accounts in the UAE, comparing their advantages and drawbacks to help you narrow down your options. Although most UAE banks provide excellent choices for both short-term and long-term savings, there are key factors to consider when making your decision.
Our Top 10 Savings Accounts: An In-Depth Review
Here's a comprehensive analysis of the savings accounts we've selected as the best options for users in the UAE. We've categorized them based on their suitability for beginners, mobile traders, day traders, professionals, and crypto traders. This comparison includes key features and benefits to help you choose the one that best meets your needs.
1. iSave Account by First Abu Dhabi Bank (FAB)
Offering some of the highest interest rates in the market, the FAB iSave Account is a great choice for those looking to save in AED and who can make a deposit within the next three months. From 1st October to 31st December 2022, the bank provides a special rate of 4.5% for new funds deposited into this account. This account also has no minimum balance requirements or limits on the number of withdrawals.
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2. Long-term Wakala Deposit by Dubai Islamic Bank (DIB)
For users who already have at least AED 25,000 and are considering a long-term savings account in local currency with a tenure of at least three years, the Long-term Wakala Deposit from Dubai Islamic Bank is an excellent option. It offers one of the highest interest rates for long-term investments, with an annual return of 2.65%. The main downsides are the three-year term and a relatively high minimum balance requirement of AED 25,000. However, if you're unsure about committing to a long-term investment, the account allows for early withdrawal at a cost.
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3. Monthly Payment Wakala Deposit by Dubai Islamic Bank (DIB)
The Monthly Payment Wakala Deposit is similar to the Long-term Wakala Deposit but offers more flexibility in terms of tenure. It provides attractive interest rates, starting from 1.6% for a minimum term of three months and going up to 2.6% annually for a five-year account. This account is ideal for users seeking a shorter-term investment with variable returns, with the minimum deposit requirement set at AED 25,000. For longer-term deposits, the rates increase to 2.35% for two years and 2.55% for three years.
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4. Savings Account by Abu Dhabi Islamic Bank (ADIB)
The ADIB Savings Account could be a suitable option for users interested in saving in foreign currencies, offering a choice of seven different currencies. Although the interest rates are somewhat lower, ranging from 0.35% to 0.37%, ADIB allows users to save in AED, USD, EUR, GBP, CHF, CAD, or JPY. The profit rate is tied to the minimum balance, which can be between 5,000 and 25,000 units or more. This account might not be ideal for local currency savings, but it's a good choice for those looking to maintain accounts in different currencies.
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5. Savings Account by RAKBANK
RAKBANK offers a multi-currency savings account with 4 to 6 different currencies, but with a lower interest rate of 0.25%. While it's not as attractive as the ADIB Savings Account, it could be a good option for those who plan to open a USD account in the next 5 months, thanks to a special promotion. During the promotional period from 1st September 2022 to 28th February 2023, users can earn an additional 1% p.a. interest by increasing their monthly average balance in USD. The minimum monthly balance requirement is 3,000 units.
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6. Bonus Booster Deposit by the Commercial Bank of Dubai (CBD)
The Commercial Bank of Dubai's Bonus Booster Deposit account is ideal for those who want to invest a small or large amount each month. With a low minimum monthly deposit requirement of AED 1,000, users can earn up to 8.25% total return after 36 months, which averages out to about 2.02% per year. Although the profit is calculated based on the average balance, the Bonus Booster Deposit account is suitable for those looking to save a portion of their salary or other income regularly.
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7. Currency Passport Savings Account by Emirates NBD
If you're looking for a savings account with a wider variety of currency options, the Emirates NBD Currency Passport Savings Account is worth considering. Although it has a relatively low interest rate of up to 0.15%, it comes with unique benefits. For example, the account is perfect for users who often convert or transfer different currencies abroad. If you frequently need to send money overseas, you can do so instantly and without fees via DirectRemit.
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8. Fixed Deposit Plus by RAKBANK
The RAKBANK Fixed Deposit Plus account is designed for long-term investors with significant savings in USD who want to invest or reinvest their funds. While other banks might offer better interest rates for AED deposits, RAKBANK provides some of the highest interest rates for USD deposits. With a minimum deposit of over $25,000, users can earn 1.25% for a 1-year term, 2% annually for 2 years, or 2.1% per annum for a 3-year savings account.
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9. MaxSaver Account by Mashreq Bank
Available in both AED and USD, the MaxSaver Account at Mashreq Bank is an excellent option for users looking to save in USD and earn a higher return, even if they don't currently have any savings. With no minimum balance requirement or monthly fees, this account offers an annual interest rate of 1.2% for both local currency and USD savings accounts. Plus, you can make one debit transaction per month without affecting that month's interest earnings.
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10. Active Saver Account by Abu Dhabi Commercial Bank (ADCB)
ADCB's Active Saver Account is available in AED, USD, or GBP, offering flexibility with varying minimum balances and terms, even though it has lower interest rates. This account is a suitable option for users looking to save in GBP, providing an annual interest rate of 0.55% for balances between GBP 10,000 and GBP 100,000 and 0.75% for balances above GBP 250,000. The bank also offers up to 0.85% in USD and up to 1.15% in AED. However, the minimum balance requirements are higher, with USD 1,000,000 for USD accounts and AED 10,000,000 for AED accounts.
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How to Select the Right Savings Account in the UAE?
Choosing the best savings account in the UAE depends on your needs and preferences. This guide highlights the key features to consider when making your decision.
1. Do you have initial capital, or are you just starting to save?
If you've already saved some money, check the minimum deposit requirements for each savings account. Banks tend to offer higher interest rates for larger deposits, so you may earn more by investing more upfront.
2. How much flexibility do you need?
If you prefer to set aside money and forget about it, choose a savings account without withdrawal options. This usually comes with a higher interest rate. If you think you might need access to your funds before the maturity date, go for an account with more flexibility, even if the interest rate is lower.
3. How long do you plan to keep your savings account?
Determine how long you can keep your savings untouched. If you can commit to a three-year term, it may be better to open a 3-year account instead of renewing a 1-year account three times. Longer terms typically offer better interest rates and higher returns.
4. Which currency will you use for your savings?
Consider which currency you'll use to fund your savings account. While most UAE banks offer accounts in AED, USD, and GBP, some banks provide multiple currency options, including AUD, BHD, CAD, CNH, HKD, JOD, KWD, OMR, SAR, and SGD. Keep in mind that foreign currency accounts may have different conditions and interest rates.
5. Do you meet the eligibility criteria?
Many savings accounts require you to have an active account with the same bank. This is typically the case for foreigners, while UAE nationals might need to prove a monthly income exceeding AED 5,000.
Conclusion
Use this guide to help you choose the best savings account in the UAE. Before opening an account, review the information in the table and weigh the benefits and drawbacks of each option based on your preferences. Once you've made your choice, follow the links for each savings account and check the terms on the bank’s official website to ensure you meet all requirements.
