Total deposits exceeded 2.16 trillion dirhams at the end of August 2022

Banks offer offers to attract deposits with interest up to 4.5%

  • Banks are trying to attract more liquidity.

    Emirates today

  • Ahmed Youssef: “Bank deposits are an excellent investment option currently, competing with many investment sectors.”

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Banks in the country are active in offering offers to attract new bank deposits, by offering an annual return of up to 4.5%, which is the highest level of interest rate on deposits during the past 10 years.

According to these banks, the interest rate on million deposits has been increased by about 0.5% compared to its counterpart of less than one million dirhams, ranging between 3.5 and 4.5%.

bank deposit

The latest data issued by the Central Bank indicates that bank deposits in banks operating in the country have recorded their highest level ever, as they exceeded 2.16 trillion dirhams at the end of last August 2022, registering a superiority of 316 billion dirhams over the total credit granted to all sectors, estimated at 1 85 trillion dirhams, which reflects the huge liquidity in the UAE banking sector.

investment option

Banking expert, Ahmed Youssef, told «Emirates Today», that bank deposits are an excellent investment option currently, competing with many other investment sectors, and is more characterized by the absence of risks, as they are 100% guaranteed.

He added that banks are trying to attract more liquidity, especially during the remaining quarter of the year, for the purpose of adjusting their balance sheets and financial statements before the end of the year. Therefore, they take the initiative to offer offers and benefits on new bank deposits.

He added that the interest rate on deposits rose with each time the central bank raised the base rate, and this encourages banks to take advantage of the current market situation by attracting more liquidity.

Youssef stated that the interest rate on deposits is currently between 3.5 and 4.5 percent, noting that this last rate is the highest for many years on deposits.

He continued, "The global market conditions generate conservatism, to some extent, among the owners of funds, and fears of risk in investment sectors that may be affected quickly, and here bank deposits become a safe haven for them."

Youssef stressed that banks in the UAE have had experience in dealing with crises, since the global financial crisis, as well as a great ability to adapt to market conditions and make the most of them.

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