Fixed deposit rates in the UAE: best FD rates compared
Fixed deposit rates in the UAE range from under 3% to about 5% a year for 12 months, depending on the bank, the amount and whether the money is new to the bank. On AED 100,000 that gap is worth more than AED 2,000 a year.
This page compares the 6, 12 and 24-month AED rates of nine banks, taken from each bank's website on 19 October 2026, and explains the rules that change what you actually earn.
In short
- Highest 12-month rates: DIB's Monthly Profit Payment Wakala (5.05% expected profit, Islamic) and RAKBANK's Fixed Deposit Plus (4.94%).
- Other terms: for 6 months DIB (4.50%), RAKBANK (4.43%), HSBC on new funds and Wio (4.25%) pay the most. For 2 years RAKBANK (4.95%) and DIB (4.90%) lead, while most other banks pay less than for 12 months.
- No minimum: Wio's Fixed Saving Spaces pay 4.5% for 12 months on the Plus, Salary and Family plans, with no minimum amount.
- No lock-in: Sarwa Save+ invests in a money market fund with an estimated 3.8% a year before its 0.5% fee (4.2% for the Halal option), and you can withdraw at any time.
- Promotional rates: HSBC pays 4.50% for 12 months, but only on new funds. Standard Chartered also pays more on money deposited in the last 30 days.
- Big banks' standard rates are lower: Emirates NBD pays 2.85% for 12 months and Mashreq 2.96%.
- Breaking early costs you: most banks cut the rate by 1 to 2 percentage points if you withdraw before maturity. FAB pays half the published rate and charges AED 100.
Best fixed deposit rates in the UAE (October 2026)
The table shows the rate for AED deposits at the bank's lowest amount band. It is ordered by the 12-month rate because that is the one term all nine banks offer. A dash means the bank does not publish that term.
Rates per year for the lowest amount band, checked on 19 October 2026. Banks can change them at any time, and the rate is fixed only once the deposit is booked. DIB: Monthly Profit Payment Wakala, expected profit. RAKBANK: Fixed Deposit Plus. HSBC and Standard Chartered: rates on new funds, except HSBC's 24-month figure, which is the standard Premier rate below AED 150,000. Wio: Plus plan. Sources: DIB, RAKBANK, HSBC, Wio, FAB, ADCB, Standard Chartered, Mashreq rate sheet and Emirates NBD.
Three details change how you read the table. DIB pays an expected profit, which is not guaranteed (see the Islamic deposits section below). HSBC and Standard Chartered pay their best rates only on money that is new to the bank. Wio's rates depend on your plan: the Standard plan pays 0% on Fixed Saving Spaces.
What each bank offers
DIB: highest expected profit, Islamic
Dubai Islamic Bank's Monthly Profit Payment Wakala pays profit every month. The expected rates are 4.25% for 3 months, 4.50% for 6 months, 5.05% for 12 months and 5.00% for 60 months, from AED 25,000. You can open it in the alt online banking or the alt mobile app.
RAKBANK Fixed Deposit Plus: high fixed rate from AED 15,000
RAKBANK pays one rate for any amount from AED 15,000 to AED 10 million: 4.23% for 3 months, 4.43% for 6 months, 4.94% for 12 months and 5.00% for 3 years. Residents and non-residents can open it. Interest is paid at maturity. RAKBANK's older Fixed Deposit account, which still shows rates below 1% on its page, is closed to new customers, so Fixed Deposit Plus is the product to compare.
HSBC: promotional rate on new money
HSBC pays 4.05% for 3 months, 4.25% for 6 months and 4.50% for 12 months on new funds. New funds means the lower of your current balance minus your balance 7 days ago, or minus your balance 30 days ago. Money already at HSBC gets the standard rates, which are 2.60% for 12 months for Premier customers below AED 150,000. The minimum is AED 10,000.
Wio: no minimum, rates tied to your plan
Wio calls its fixed deposits Fixed Saving Spaces and opens them in the app for 1, 3, 6 or 12 months. On the Plus plan the AED rates are 3.75% for 1 and 3 months, 4.25% for 6 months and 4.5% for 12 months. The Salary plan pays 6% for 1 month if you also spend at least AED 5,000 a month on your card, and 4% for 3 months. You can close 1 and 3-month spaces early without a penalty.
FAB: rates for terms from one week
First Abu Dhabi Bank publishes rates from 1 week (3.05%) to 12 months (4.15%) for amounts up to AED 1 million. Larger amounts get slightly more: 4.20% up to AED 5 million and 4.25% above it. The minimum is AED 5,000 and terms run up to 12 months.
ADCB: the widest range of terms
ADCB's Fixed Deposit Account starts at AED 5,000 and runs from 7 days to 10 years. The AED rates are uneven: 4.00% for 12 months, but 2.00% for 9 months and 2.65% for 18 months. Check the rate for the exact term before you book.
Standard Chartered, Mashreq and Emirates NBD: lower standard rates
Standard Chartered pays 3.10% for 12 months on fresh funds, meaning money deposited in the 30 days before booking, and 2.80% on existing funds, from AED 25,000. Mashreq's rate sheet shows 2.96% for 12 months and 3.19% for 2 years, from AED 2,500. Emirates NBD pays 2.85% for 12 months from AED 10,000. If you already bank with one of them, compare the gap before moving: on AED 100,000 for a year, 2.85% earns AED 2,850 and 4.94% earns AED 4,940.
Longer terms: do you earn more for locking in?
Not always. At Emirates NBD the 2 to 5-year rate (2.50%) is lower than the 12-month rate (2.85%). At DIB the 60-month expected profit (5.00%) is slightly below the 12-month one (5.05%). RAKBANK pays a little more for 3 years (5.00%) than for 1 year (4.94%).
When the longer rate is not clearly higher, a 12-month deposit is usually the better choice. You keep the option to move your money at maturity if rates rise or another bank pays more. Deposit rates tend to move with EIBOR, the rate UAE banks charge each other, so check the trend on our EIBOR rate today page before you lock in for 2 years or more.
How fixed deposit interest is calculated
Most UAE fixed deposits pay simple interest at maturity: amount × rate × days ÷ 365 (some banks count 360 days). AED 50,000 at 4.00% for 12 months earns AED 2,000. For 6 months at 3.00% it earns about AED 750.
Some products pay interest monthly (DIB) or upfront on day one (ADCB's Upfront Interest Deposit). An upfront payment lets you spend or reinvest the interest earlier, but the advertised rate is lower: ADCB pays up to 2.8% upfront against 4.00% at maturity for 12 months. You can test different amounts and terms in our fixed deposit calculator. If you renew the deposit each year and leave the interest in it, the compound interest calculator shows how it adds up.
What happens if you break a fixed deposit early?
Every bank lets you withdraw before maturity, but you lose part of the interest. Here are the rules each bank publishes:
Sources: each bank's fixed deposit page and the Emirates NBD Key Facts Statement, checked on 19 October 2026.
An example shows the cost. You put AED 100,000 in a 12-month Emirates NBD deposit at 2.85% and withdraw after 6 months. The 6-month rate is 2.50%, so you get 1.50% for 6 months: AED 750, about half of the AED 1,425 you would have earned by then at the full rate. If you might need the money, keep it in a savings account or split it across deposits with different maturities.
Islamic term deposits: expected profit, not interest
Islamic banks offer term deposits under Wakala or Mudaraba contracts. You appoint the bank to invest your money in Sharia-compliant assets and receive a share of the profit. The bank publishes an expected profit rate. DIB states that its rates are based on past performance and that it does not guarantee the payment of the anticipated profit.
This matters when you compare a Wakala deposit with a conventional one, which pays the agreed rate as long as the bank stays solvent. If you pay zakat, money held in a deposit counts towards it, and our zakat calculator works out the amount.
Alternative without a lock-in: Sarwa Save+ and Halal
If you want a return close to a fixed deposit but might need the money before 12 months, a money market fund is the main alternative. Sarwa, regulated by the FSRA in Abu Dhabi Global Market, offers two through Sarwa Save:
- Save+: invests in the Pictet Short-Term Money Market fund in US dollars, with an estimated return of 3.8% a year before Sarwa's 0.5% management fee, or about 3.3% after it.
- Halal: invests in the Emirates Islamic Money Market Fund, with an estimated 4.2% before the 0.5% fee, or about 3.7% after it.
- Access: no minimum and no lock-in. You can withdraw at any time at no cost, and the money reaches your bank in 3 to 5 business days for Save+ and 4 for Halal, according to Sarwa's withdrawal timeline.
There are two differences from a fixed deposit. The return is an estimate that moves with interest rates, so it is not fixed or guaranteed, and Sarwa states that it is not a bank. Save+ also holds US dollars: Sarwa converts AED at 3.6823 against the official peg of 3.6725, a cost of about 0.27% when you deposit. On AED 100,000 kept for a year, that leaves about AED 3,000 after the fee and the conversion, more than Emirates NBD's 12-month deposit and less than the top deposits above, with no penalty if you leave early.
Read our Sarwa review or open a Sarwa Save account.
Fixed deposit or another option?
- Savings account: lower rate in most cases, but you can withdraw at any time. Wio, for example, pays up to 3.25% on flexible Saving Spaces with no lock-in.
- Fixed deposit: a known return for a set period. It suits money you will need within 1 to 3 years, such as a house deposit or school fees.
- Monthly investing: for goals 10 or more years away, stocks and ETFs have grown more over long periods, with ups and downs along the way. Our guide to SIP and monthly investment plans in the UAE compares the options.
For a wider view of where to keep and grow your money, see our guide to the best investments in the UAE for expats.
Taxes on fixed deposit interest in the UAE
The UAE does not tax individuals on bank interest, so you keep the full amount. If you are tax resident in another country, for example as a non-resident with an FD in the UAE, that country may tax the interest. UAE banks also report accounts of foreign tax residents under the Common Reporting Standard (CRS) and FATCA for US persons.
How to choose a fixed deposit in the UAE
- Match the term to when you need the money. Then compare rates for that term: for 6 months DIB, RAKBANK, HSBC and Wio lead, for 2 years RAKBANK and DIB.
- Check whether the rate is a promotion. New-funds rates at HSBC and Standard Chartered need money from outside the bank.
- Read the early withdrawal rule. A 2% cut can wipe out the interest on a short deposit.
- Check the minimum and the amount bands. Some banks pay more above AED 1 million.
- Ask for the Key Facts Statement (KFS). UAE banks must give you this summary of rates, fees and penalties before you sign.
Bottom line
In October 2026 the highest 12-month AED rates come from DIB (5.05% expected profit) and RAKBANK Fixed Deposit Plus (4.94%), followed by HSBC on new funds and Wio at 4.50%. Emirates NBD and Mashreq pay under 3%. If you might need the money early, Sarwa Save+ has no lock-in and an estimated 3.8% a year before its 0.5% fee. On AED 100,000 for one year, choosing 4.94% instead of 2.85% earns about AED 2,090 more.
Frequently asked questions
Which bank is best for a fixed deposit in the UAE?
For a 12-month AED deposit, DIB (5.05% expected profit, Islamic) and RAKBANK Fixed Deposit Plus (4.94%) pay the most among the banks we checked in October 2026. Wio pays 4.5% with no minimum on its Plus, Salary and Family plans. The best choice also depends on the minimum amount and the early withdrawal rule.
Which bank pays the most on a 6-month fixed deposit in the UAE?
DIB's Monthly Profit Wakala pays an expected 4.50% for 6 months from AED 25,000, followed by RAKBANK Fixed Deposit Plus at 4.43% from AED 15,000. HSBC (new funds only) and Wio's Plus plan pay 4.25%.
How much interest does a fixed deposit pay in the UAE?
For 12 months, between 2.85% (Emirates NBD) and 5.05% (DIB) a year in October 2026. AED 100,000 for one year earns between AED 2,850 and AED 5,050.
Which bank gives 7% interest on fixed deposits in the UAE?
None of the banks we checked pays 7% on a 12-month AED deposit. The highest short-term rate is Wio's 6% for one month on the Salary and Family plans, which requires a salary transfer and AED 5,000 of card spending a month.
Which bank gives 9.5% interest on an FD?
Rates like 9.5% are not offered on AED deposits in the UAE. They usually refer to rupee fixed deposits at some banks in India, which carry currency risk if your costs are in dirhams.
What is the best alternative to a fixed deposit in the UAE?
If you don't want to lock your money, a money market fund such as Sarwa Save+ (estimated 3.8% a year before a 0.5% fee) or its Halal option (4.2%) lets you withdraw at any time. The return is not guaranteed and changes with interest rates.
Is fixed deposit interest taxed in the UAE?
No. Individuals pay no income tax on bank interest in the UAE. Your home country may still tax it if you are tax resident there.
Can non-residents open a fixed deposit in the UAE?
Some banks allow it. RAKBANK's Fixed Deposit Plus is open to resident and non-resident individuals. Other banks may require a UAE residence visa and an Emirates ID, so check before you apply.
Can I withdraw my fixed deposit before maturity?
Yes, but you earn less. Most banks pay the rate for the time held minus 1 to 2 percentage points, and FAB pays half the published rate plus a fee. Some banks pay no interest if you withdraw in the first days.
