Best Fixed Deposit Rates in UAE (2025) – Up to 5%

By / June 23, 2025
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One of the most secure and trusted modes of investment that a person can invest in the UAE is the fixed deposits (FDs). As a resident or an expatriate, fixed deposits provide a low-risk income for your savings to grow at a fixed rate. The preference of FDs lies in the fact that they offer a specified return and are secure against market risks as well as flexible in tenures. By selecting the appropriate bank and tenure, one can get the best returns out of it without having to fear the market risks.

In this guide, I will give all the details regarding the highest fixed deposit rates in the UAE in 2025.

What is a Fixed Deposit?

Fixed Deposit (time deposit or term deposit) is a financial instrument provided by banks in which you park your money for a certain period at a fixed rate of interest or profit rate over a specified time. You get paid a guaranteed return on maturity by the bank in exchange.

Why Fixed Deposits Are a Wise Choice

  • Low-risk investment
  • Guaranteed returns
  • Flexible tenures (from 1 month to several years)
  • Easy to open and manage
  • Can be used as collateral for loans

You can also try our fixed deposit calculator.

Mashreq Fixed Deposit Rates

Tenure Interest Rate (per annum) Minimum Amount
1 month 1.43% AED 10,000
3 months 1.55% AED 10,000
6 months 1.68% AED 10,000
9 months 1.84% AED 10,000
12 months 2.20% AED 10,000

Emirates Islamic Bank Fixed Deposit Rates

Tenure Profit Rate (p.a.) Minimum Amount (AED)
1 Year – Monthly 2.95% 25,000
1 Year – Quarterly 3.00% 25,000
1 Year – Half-yearly 3.05% 25,000
1 Year – Yearly 3.30% 25,000
2 – 5 years 3.00% 25,000

DIB Fixed Deposit Rates

Tenure Interest Rate (p.a.) Minimum Amount (AED)
3 months 3.90% 25,000
6 months 3.80% 25,000
9 months 3.75% 25,000
12 months 3.55% 25,000
12 months 3.95% 100,000
18 months 3.50% 25,000

Emirates NBD Fixed Deposit Rates

Tenure Interest rate per annum Minimum amount
3 months 2.15% AED 10,000
6 months 2.15% AED 10,000
12 months 2.15% AED 10,000
24 months 1.75% AED 10,000
36 months 1.50% AED 10,000

ADCB Bank Fixed Deposit Rates

Tenure Interest Rate (per annum) Minimum Amount
3 months 3.00% AED 25,000
6 months 3.10% AED 25,000
9 months 3.15% AED 25,000
12 months 3.15% AED 25,000
18 months 2.50% AED 25,000
30 months 2.55% AED 25,000
36 months 2.65% AED 25,000

National Bank of Bahrain

Tenure Interest Rate (per annum) Minimum Amount
1 month 1.01% Up to AED 100,000
3 months 0.91% Up to AED 100,000
6 months 0.91% Up to AED 100,000
12 months 1.10% Up to AED 100,000

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How do You Open a Fixed Deposit in the UAE?

In the UAE, opening an FD is generally a very easy procedure.

Steps You Can Follow

  1. Choose the bank and deposit plan
  2. Gather your documents (Emirates ID, passport, proof of income)
  3. Visit the branch or open online (if supported)
  4. Transfer your deposit amount
  5. Confirm your tenure and profit payout option

Most banks now offer online FD booking through their mobile apps or internet banking.

Tips to Maximize Your Fixed Deposit Earnings

Diversify Across Banks

Why put all your money in one FD and lock it when you can divide your money between 2-3 banks that offer the best rates? This lowers risk and raises average return.

Choose Monthly or Quarterly Payouts

In case you need periodic income, then seek FDs that pay interest monthly or quarterly. This is the flexibility that is provided by Emirates Islamic Bank.

Take Advantage of Promotions

Other banks offer promotional rates on large sums of deposits or for first-time customers. Always enquire about such deals with your bank representative.

Reinvest the Returns

The force of compounding is strong. Rather than taking the interest accrued, reinvest it. This can increase your corpus in a couple of years.

FAQ Section

FAQS

Can I break a fixed deposit early?
Yes, but banks usually charge a penalty or reduce the interest rate.
Is the interest income taxable in the UAE?
No, UAE does not tax individual income from FDs.
Can I open a fixed deposit online?
Most major UAE banks allow you to open an FD online through mobile or internet banking.
Are fixed deposits Shariah-compliant?
Only Islamic banks offer Shariah-compliant FDs, like Emirates Islamic and Dubai Islamic Bank.
Which bank offers the best fixed deposit rate for AED 100,000?
Dubai Islamic Bank (3.95% for 12 months) is currently the highest in 2025.

Read Also: E303 Bus Sharjah to Dubai: Timings, Route & Fare Guide

Final Thoughts

Writing on financial issues as I have done over the decades, I can assure you, fixed deposits are a thing of beauty, a safe way to keep and increase your money. However, you have to make a good choice. I have made the effort to compare the best fixed deposit rates in the UAE in 2025 so that you do not have to do the legwork.

Are you a careful saver or an experienced investor seeking reliable income? In the UAE, there is an FD plan that is tailored just for you.

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