Highest Interest Rate?
 

New to the forum and Dubai.

I have seen a lot of ads from different banks, any recommendation who is offering the higest returns?

UAE National Bonds, any experience?

thanks

Re: Highest Interest Rate?
 

I am assuming you are referring to UAE savings accounts. As the UAE Dirham is pegged to the US Dollar rates are linked too, so no one is offering high rates of interest. For various reasons, you should consider keeping savings offshore anyway, although rates are unlikely to be much higher.

The National Bond return for 2008 has just been announced at 7.07%. It is Sharia compliant product and so you do not receive interest, but a share of profits. The return is not guaranteed,

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Re: Highest Interest Rate?
 

Thanks.

Now I have heard this before, don't keep a lot ofmoney in Dubai.

ANy specific reasons?

heard accounts can be frozen here by the govt anytime or even by the landlords and such. Any truth to that?

Re: Highest Interest Rate?
 

Yes - that is true. Not sure about Landlords, but if you end up in trouble with the old bill, I have heard that your accounts can be frozen. Best just to keep pin money in a local UAE account if you have one - squirrel the rest away offshore :)

Re: Highest Interest Rate?
 

One of the main reasons is due to Sharia Law (covered in the Wiki). If a husband dies his accounts (both sole & joint) will be frozen immediately and the wife will not have access to funds. She is also not the automatic beneficiary of assets in the UAE.

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Re: Highest Interest Rate?
 

so how much she will get ?

Re: Highest Interest Rate?
 

I would not keep money as savings in the UAE.

The local banks here are up to their eyeballs in debt secured on property that has fallen by 50% plus already. Think Northern Rock x 100.

To minimize risk, I would spread it around European banks and ensure you are under the government protected amounts. Offshore jurisdictions like Jersey or IoM have fewer guarantees if a bank fails, so beware of those.

Also consider some gold. This is a good defence against either rampant inflation (which could happen as the central banks in the US and UK looks set to start printing money as a last throw of the dice) or a complete meltdown of the banking sector. Make sure you have full ownership, even if it is held in a vault (like bullionvault.com). In the event of hyperinflation or banking meltdown, you might lose some cash holdings, but the gold will go through the roof. So you don't need a huge amount of the stuff to cover that risk.

In short, the risks in the world banking sector are huge, so don't chase high interest rates, chase the banks you regards as safest. It is just not worth risking a dodgy bank for the sake of a couple of % per year, especially one in an offshore jurisdiction or backing from a government that does not have the funds to actually pay up (e.g. iceland).

Re: Highest Interest Rate?
 

um so we should move our money out of the UAE and put in European Banks, which banks tho and how do we know they are safe.

Am getting worried re the money i have here in local banks:curse:

Re: Highest Interest Rate?
 

It depends on if her husband made a will and/or if he has any male relatives in most cases.

It's possible she would end up with very little but unlikely...the problem is that it can take months to resolve so what will she do for income while she waits for the verdict of the court?

N.

Re: Highest Interest Rate?
 

give it to me :) i will secure it for you lol

Re: Highest Interest Rate?
 

well i don't think it is complicated that much.

i am not sure... but are you talking about a case of a british lady who just lost her husband here in the UAE?? or generally speaking??

Re: Highest Interest Rate?
 

The trouble is - local banks ARE offering high rates of interest........... way above 'market rates' because they desperately need cash.

I've seen bids of 6-7% p.a. for 6 month fixed term deposits.......... but beware, and remember the 'golden rule' - never give your money to anyone who is willing to pay the sort of interest rate you'd like to earn.

And if you have a million or more AED, and are willing to lock it away for THREE YEARS............... Ab Dab Commercial Bank will pay you 25%.

Avoid............ it tells you something about how desperately they need your cash.

Re: Highest Interest Rate?
 

Agree: research the BCCI debacle; not that present banks are run by criminals, but offers that seem too good to be tue....