Having money in the bank has many advantages, including easy access and low risk. These perks in combination with a lack of understanding of other investment options mean that many people continue to park their savings in a regular account with no growth.
Financial experts agree that other than saving for short-term goals or emergency funds, putting all your money in a regular savings account could diminish its value in the long run due to inflation.
Deciding where to hold your money is dependent on inflation, financial goals and the need for liquidity.
Choosing the ideal savings scheme
“One must consider the current inflation rate to ensure that the savings earn a rate of return that matches or surpasses inflation, preserving the purchasing power,” says Jelena Janjusevic, associate professor of finance at Heriot-Watt University Dubai.
“Also, assess risk tolerance as higher yields typically accompany greater risks, and determine how much risk you are comfortable assuming to achieve a higher return on your savings.”
The projected inflation rate in the UAE for 2024 is around 2.3 per cent, according to the Central Bank of the UAE.
So, unless your savings in the country are increasing in value by at least 2.3 per cent per annum, you’re losing money.
“Evaluate liquidity requirements and choose a savings vehicle that permits easy access to funds without penalties or limitations,” Ms Janjusevic says.
“Lastly, align your yield calculations with long-term financial objectives, whether saving for immediate needs or future goals such as retirement.”
We compiled a list of eight low-risk savings products in the UAE.
National Bonds
National Bonds claims it offers profits ranging up to 11 per cent per annum across diverse products such as Second Salary, The Payout, Term Sukuk and My One Million.
As an example, the Term Sukuk is great for someone who already has money saved and can keep it parked for a short time. This Sharia-compliant low-risk bond instrument has tenures starting from three months for a year at a minimum investment of Dh10,000. Profit rates in 2023 ranged from 4.4 to 4.9 per cent per annum.
However, if you need a more liquid option, National Bonds has products where money can be redeemed easily after an initial lock-in period, which ranges from 30 to 90 days.
Subscription fees and withdrawal charges may apply, depending on the timing of the withdrawals.
Mashreq Money Multiplier
This savings account in Mashreq offers 1.5 to 3 per cent profit on savings tied to a spend/remit condition. For instance, if you save Dh10,000 to Dh29,999 and commit to a spend/remit slab of Dh3,000 to 7,999 in a month, you’ll be eligible to earn 1.5 per cent interest.
The highest rate of 3 per cent is paid to savers who hold an average monthly balance of Dh150,000 to Dh200,000 with a monthly spend/remit requirement of Dh20,000. If the saver falls below the spending threshold, interest paid will be lower.
Wio Fixed Saving Spaces
Digital bank Wio offers up to 5.5 per cent in interest income for certain account holders. This rate is applicable on Fixed Savings Spaces, which is only accessible to Plus Plan subscribers. Tenures available range from one month to a year.
You could also choose to hold savings in the more flexible Saving Spaces which offers 5 per cent interest, subject to terms and conditions.
The Plus Plan requires account holders to maintain a minimum balance of Dh35,000 across the main account, savings and investments. The deposit itself does not have a minimum requirement.
Liv Money Ahead
Liv, the digital banking subsidiary of Emirates NBD, offers up to 3.5 per cent interest on their fixed savings scheme called Money Ahead Deposits.
A minimum deposit of Dh10,000 is required, with tenure options from one month to a year. Interest rates start at 2.1 per cent for a month, while the highest interest rate of 3.5 per cent is paid on deposits held for 12 months.
FAB iSave
First Abu Dhabi Bank (FAB) has a savings account that offers interest ranging up to 3.2 per cent, where the higher ranges are applicable for deposits more than Dh500,000.
However, the bank conducts promotional campaigns and this year account holders or new customers can start iSave accounts to get up to 5.25 per cent in interest income. This offer is only valid until September.
Money market funds make the perfect option for short-term savings
Bilal Abou-Diab,
co-founder and chief executive, Vault Wealth
ADCB Active Saver
Targeted towards individuals with a huge chunk of money in hand, this account offers interest rates of up to 2.25 per cent per annum.
The high rate is applicable to accounts that hold upwards of Dh2 million, making it suitable for residents who have a retirement fund.
Sarwa Save
Money market funds are now increasing in popularity as low-risk modest-growth avenues for investment.
Bilal Abou-Diab, co-founder and chief executive of Vault Wealth, says these funds make the perfect option for short-term savings and “allows the saver to hold something where their principal is highly liquid and super safe, yet generate a short-term income level that is in line with the interest rates available to uber wealthy individuals”.
UAE-based investment platform Sarwa has both Sharia-compliant and traditional savings products invested in money market funds starting from $500 and no lock-in period.
The traditional Sarwa Save+ has a projected return rate of 5.1 per cent before fees, while Sarwa Save Halal offers 4.6 per cent before fees.
The platform charges 0.5 per cent as an annual management fee.
StashAway Simple
StashAway, another UAE-based investment platform, also has a savings product where money is invested in a Sharia-compliant money market fund.
The management fee is 0.3 per cent with a projected rate of return of 4.7 per cent.
The National is not promoting these products. These rates are as advertised on published date and subject to terms and conditions, which can be changed at the discretion of the provider. All stock market investments are subject to market risks.
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BMW M5 specs
Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor
Power: 727hp
Torque: 1,000Nm
Transmission: 8-speed auto
Fuel consumption: 10.6L/100km
On sale: Now
Price: From Dh650,000
From Europe to the Middle East, economic success brings wealth - and lifestyle diseases
A rise in obesity figures and the need for more public spending is a familiar trend in the developing world as western lifestyles are adopted.
One in five deaths around the world is now caused by bad diet, with obesity the fastest growing global risk. A high body mass index is also the top cause of metabolic diseases relating to death and disability in Kuwait, Qatar and Oman – and second on the list in Bahrain.
In Britain, heart disease, lung cancer and Alzheimer’s remain among the leading causes of death, and people there are spending more time suffering from health problems.
The UK is expected to spend $421.4 billion on healthcare by 2040, up from $239.3 billion in 2014.
And development assistance for health is talking about the financial aid given to governments to support social, environmental development of developing countries.
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
Killing of Qassem Suleimani
Five expert hiking tips
Always check the weather forecast before setting off
Make sure you have plenty of water
Set off early to avoid sudden weather changes in the afternoon
Wear appropriate clothing and footwear
Take your litter home with you
The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)
On sale: Now
Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
Most sought after workplace benefits in the UAE
- Flexible work arrangements
- Pension support
- Mental well-being assistance
- Insurance coverage for optical, dental, alternative medicine, cancer screening
- Financial well-being incentives
UAE v Gibraltar
What: International friendly
When: 7pm kick off
Where: Rugby Park, Dubai Sports City
Admission: Free
Online: The match will be broadcast live on Dubai Exiles’ Facebook page
UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)
Dust and sand storms compared
Sand storm
- Particle size: Larger, heavier sand grains
- Visibility: Often dramatic with thick "walls" of sand
- Duration: Short-lived, typically localised
- Travel distance: Limited
- Source: Open desert areas with strong winds
Dust storm
- Particle size: Much finer, lightweight particles
- Visibility: Hazy skies but less intense
- Duration: Can linger for days
- Travel distance: Long-range, up to thousands of kilometres
- Source: Can be carried from distant regions
Analysis
Maros Sefcovic is juggling multiple international trade agreement files, but his message was clear when he spoke to The National on Wednesday.
The EU-UAE bilateral trade deal will be finalised soon, he said. It is in everyone’s interests to do so. Both sides want to move quickly and are in alignment. He said the UAE is a very important partner for the EU. It’s full speed ahead - and with some lofty ambitions - on the road to a free trade agreement.
We also talked about US-EU tariffs. He answered that both sides need to talk more and more often, but he is prepared to defend Europe's position and said diplomacy should be a guiding principle through the current moment.
WOMAN AND CHILD
Director: Saeed Roustaee
Starring: Parinaz Izadyar, Payman Maadi
Rating: 4/5
MATCH INFO
Pakistan 106-8 (20 ovs)
Iftikhar 45, Richardson 3-18
Australia 109-0 (11.5 ovs)
Warner 48 no, Finch 52 no
Australia win series 2-0
UK-EU trade at a glance
EU fishing vessels guaranteed access to UK waters for 12 years
Co-operation on security initiatives and procurement of defence products
Youth experience scheme to work, study or volunteer in UK and EU countries
Smoother border management with use of e-gates
Cutting red tape on import and export of food
ELECTION%20RESULTS
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WHAT IS GRAPHENE?
It was discovered in 2004, when Russian-born Manchester scientists Andrei Geim and Kostya Novoselov were experimenting with sticky tape and graphite, the material used as lead in pencils.
Placing the tape on the graphite and peeling it, they managed to rip off thin flakes of carbon. In the beginning they got flakes consisting of many layers of graphene. But when they repeated the process many times, the flakes got thinner.
By separating the graphite fragments repeatedly, they managed to create flakes that were just one atom thick. Their experiment led to graphene being isolated for the very first time.
In 2010, Geim and Novoselov were awarded the Nobel Prize for Physics.
What is graphene?
Graphene is a single layer of carbon atoms arranged like honeycomb.
It was discovered in 2004, when Russian-born Manchester scientists Andrei Geim and Kostya Novoselov were "playing about" with sticky tape and graphite - the material used as "lead" in pencils.
Placing the tape on the graphite and peeling it, they managed to rip off thin flakes of carbon. In the beginning they got flakes consisting of many layers of graphene. But as they repeated the process many times, the flakes got thinner.
By separating the graphite fragments repeatedly, they managed to create flakes that were just one atom thick. Their experiment had led to graphene being isolated for the very first time.
At the time, many believed it was impossible for such thin crystalline materials to be stable. But examined under a microscope, the material remained stable, and when tested was found to have incredible properties.
It is many times times stronger than steel, yet incredibly lightweight and flexible. It is electrically and thermally conductive but also transparent. The world's first 2D material, it is one million times thinner than the diameter of a single human hair.
But the 'sticky tape' method would not work on an industrial scale. Since then, scientists have been working on manufacturing graphene, to make use of its incredible properties.
In 2010, Geim and Novoselov were awarded the Nobel Prize for Physics. Their discovery meant physicists could study a new class of two-dimensional materials with unique properties.
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MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
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