Fixed Deposit with Islamic Banks in UAE

Fixed deposit is one option if you need to park your savings for a shorter period, say a year or less. Fixed deposit is for a fixed period from one month to one year or even more. Conventional banks offer a fixed interest rate which varies based on the duration. Islamic banks in UAE give better return compared to its counter part in the conventional banking sector. The rate with Islamic bank is not fixed upfront, but it is declared at the end of a fixed period which is mostly every three months.  It is a profit rate which is derived from the profit they make from the investment of your fund. The profit earned on the fund is shared between bank and the depositors in a fixed proportion and the share of depositor profit is distributed among depositors periodically. Recently more and more conventional banks are offering Sharia compliant deposits and investment products.

Profit rate declared for the quarter ended 31st March 2010


1 month

3 months

6 months

9 months

1 year

Dubai Islamic Bank 3.00% 3.05% 3.10% 3.15% 3.25%
Emirates Islamic Bank N/A 3.26% 3.35% 3.53% 3.80%
Mashreq Al Islami 1.82% 3.28% 3.77% 4.25% 4.49%
Noor Islamic Bank* 3.00% 3.40% 3.65% 3.60% 3.80%
ADCB Meethaq 2.47% 3.60% 4.08% N/A 4.70%

* Noor Islamic Bank rate is as declared for the month of April 2010

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2 thoughts on “Fixed Deposit with Islamic Banks in UAE”

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