Fixed Deposit Calculator UAE (FD Interest)
Calculate how much interest your fixed deposit will earn in AED, based on the amount, rate, term and interest payout.
Fixed deposits in the UAE: how they work
What is a fixed deposit?
A fixed deposit (also called a term deposit or FD) is money you place with a bank for a set period at an agreed interest rate. In return for locking the money away, you earn more than in a regular savings account - and you know exactly how much you will receive at maturity. In the UAE, banks offer fixed deposits in AED and in major foreign currencies, with terms from 1 month to 5 years.
How is the interest calculated?
For a standard deposit paid at maturity, the formula is: interest = deposit amount × annual rate × (months ÷ 12).
Example: AED 50,000 at 4% for 12 months earns AED 2,000, so you receive AED 52,000 at maturity. Banks may use slightly different day-count conventions (such as actual/360), so the exact figure can vary by a few dirhams.
Simple interest vs reinvested interest
Most UAE fixed deposits pay simple interest in one payment at maturity. Some products credit interest monthly or quarterly - if that interest stays in the deposit, it starts earning interest itself (compounding), which slightly increases the total. The difference grows with longer terms: to see the long-term effect, try our compound interest calculator.
Are fixed deposits safe in the UAE?
Fixed deposits are held with banks licensed and supervised by the Central Bank of the UAE. They are considered one of the lowest-risk places to keep money, but always check the bank's standing and the exact terms of the product - minimum amounts, renewal rules and early withdrawal conditions differ between banks.
Can I withdraw my money early?
Usually yes, but with a penalty: most banks reduce the interest rate or forfeit part (sometimes all) of the accrued interest if you break the deposit before maturity. If you might need the money, consider a shorter term or splitting the amount across several deposits.
What about Islamic (Sharia-compliant) deposits?
Islamic banks in the UAE offer Mudarabah and Wakala deposits instead of interest-based FDs. They work similarly in practice, but pay an expected profit rate rather than a guaranteed interest rate. You can still use this calculator with the expected profit rate as an estimate.
Just received your end-of-service gratuity?
A fixed deposit is a common first home for a gratuity payout while you decide what to do with it. Calculate what you are owed with our UAE gratuity calculator, and if you plan to invest part of it, start with our list of regulated brokers in the UAE.
Final note
Rates change frequently and vary by bank, amount and term - and watch out for automatic renewal at a lower rate at maturity. This calculator is an educational estimate and not financial advice; always confirm the exact terms with your bank before committing.