The Emirates InterBank Offered Rate (EIBOR), published by the UAE central bank is the filtered average of the interest rates charged by banks in the country. It is widely used in the GCC by borrowers and lenders to conduct financial transactions.

In the same manner the London InterBank Offered Rate (LIBOR), is a filtered average of a selection of international banks for use in global markets.

If you choose a 3 years AED Floater, the minimum guaranteed will be the highest: 3.00% from beginning until maturity or redemption.

If you choose a 2 years AED Floater, the minimum guaranteed will be 2.75% from beginning until maturity or redemption, for year 1 and also for year 2.

Finally, a 1 year AED Floater will carry a minimum guaranteed of 2.50% for the entire year.

You will have a higher guaranteed rate with the 3 years Floater.

For a AED Floater deposit with 3 years maturity:

Example 1: If EIBOR fixes at 1.50%, we calculate: 1.50% + 0.50% = 2.00% p.a. But the client still receives the minimum rate of 2.50%

Example 2: If EIBOR fixes at 3.00%, we calculate: 3.00% + 0.50% = 3.50% p.a. The client receives exactly 3.50%

Example 3: If EIBOR fixes at 3.75%, we calculate: 3.75% + 0.50% = 4.25% p.a. But the client will receive the maximum rate of 4.00%

The same applies to the USD Floater with the US LIBOR as index

The index (EIBOR or LIBOR) used to calculate the interest is fixed in advance, at the beginning of each quarter. The interest is paid at the end of each quarter, directly into the client’s current account.

Yes, partial withdrawals are allowed, any deposit amount booked under Floater can be redeemed (provided the outstanding amount remains higher than the minimum amount
required) with five UAE business days notice, given in writing. Penalties apply: No interest paid if cancelled during the first 6 months. The bank reserves the right to recover interests paid
in excess from the current account or on the redemption amount. After 6 months, a penalty of 1% on the rate of interest will be applied, only on the specific last quarter.

You can choose to subsequently reinvest in the Floater later, subject to prevailing market rates at that time.