UAE Residents Opting for Longer Saving Deposits Amid Declining Interest Rates

UAE residents are turning to longer-term saving deposits as interest rates in the country are expected to drop this year. As the US Federal Reserve is set to cut rates, many residents aim to lock in high returns before they decline. Financial institutions in the UAE offer savings products with returns between 3.5% and 4% for up to five years, making them an attractive option.

UAE Residents: Locking in High Returns Before Interest Rates Fall

Mohammed Qasim Al Ali, CEO of National Bonds, explains that residents want to secure high returns. He notes that long-term deposits, like National Bonds’ “Second Salary” and “Booster” products, offer returns over three to ten years. This allows savers to lock in favorable yields before interest rates begin to drop.

Sharia-Compliant Savings and Investment Products in Demand

UAE residents increasingly choose Sharia-compliant saving and investment products for their high returns. National Bonds offers a program with a starting deposit of Dh1,000 per month. Customers can choose a tenure between three and ten years, earning attractive returns on their savings. These products cater to a wide range of income classes.

Psychological Shift in Saving Patterns Among UAE Residents

There is a noticeable psychological shift in how UAE residents view saving. Many now see savings as a key enabler to achieving financial goals. People are focusing more on structured, long-term saving strategies rather than short-term, less rewarding deposits.

National Bonds Sees Growth in Customer Numbers and Investments

National Bonds reported a 51% increase in regular savers in 2024, adding 45,800 new customers. Their investment portfolio grew by 22% to Dh15.8 billion, showing significant growth. The company also explores integrating AI-driven financial tools to offer personalized savings advice to its customers.

Future Plans and Expansion

National Bonds is expanding its offerings, including plans to launch an office tower in Barsha Heights by 2025. With a strong focus on technological advancements, the company aims to enhance customer service and engagement.