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Browse our FAQ's and get an answer right away
What are EIBOR and LIBOR?

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.

Which minimum guaranteed rate is applied?

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.

How are the minimum and maximum rates impacting the interest paid?

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

How is the interest on the Floater paid?

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.

Can I cancel the deposit at any time?

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.

What if I need money for short term requirement but would like to continue this product?
UAB may provide customers with an overdraft against this product at an attractive price to meet any short-term cash flow requirements. The facility is secured against lien on the underlying deposit. The rate of the lending facility fluctuates quarterly with the rate of the Floater deposit rate. Please contact your relationship manager for further details. Subject to bank’s approval.

You can reach us using any of the following numbers

UAB Toll Free

800 474

International callers

+971 6 5987332

Sadara Toll Free

800 72 32 72

Sadara international

+971 6 5987333

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