Dubai attracts expats for one simple reason- tax free salaries which motivate them to save more money than they could in their home countries. Even then, many expats leave Dubai without saving enough. If you don’t want to be one of them, you better start to save now!
You can start to budget your salary with a tried & tested 50/30/20 rule of thumb. This means 50% of your salary should go towards fulfilling basic needs that you cannot avoid, such as groceries, housing, utilities, car payments etc., 30% should go towards discretionary wants such as shopping, dining out and other hobbies; and 20% should go straight into your savings accounts.
If you are staring at a low salary, save 5% and increase gradually.
One easy way out to put your savings aside is to open a savings account and transfer 20% of your salary there. You can then earn extra money through interest and profit rates adding more to your savings.
Here’s our roundup of some of the savings account options in Dubai:
Sharia Compliant Savings Accounts
Abu Dhabi Islamic Bank- Ghina Savings Account
With 0.36% annual return, the savings account also offers you an opportunity to win Dhs 3 million every 4 months. You would need to maintain a minimum balance of Dhs 20,000 to enter a millionaire draw and a minimum balance of Dhs 5,000 to earn profit.
Noor Bank- Dual Account
This account is a combination of a current and savings account and offers a profit rate of up to 0.70% plus a chance to win back up to Dhs 10,000 in debit card spends every month. A minimum balance of Dhs 3,000 is required to earn profit. Additionally, deposit Dhs 5,000 or more in your savings account and earn an additional 2% p.a. cash in addition to profit rates on the savings account
Dubai Islamic Bank - Shaatir Savings Account
Shaatir is a Savings account from Dubai Islamic Bank just for children, which will help them understand banking from a young age. On the exclusive Shaatir website, accessible only to Shaatir account holders, children can learn about banking and saving, play games and watch informative videos. Profit rate is 0.65% and is credited to the account on a quarterly basis. There is no maintenance fees or minimum balance.
Emirates NBD Mudaraba Savings Account
Mudaraba is a profit-sharing partnership contract between a capital provider (Rab-ul-Mal) and a Mudareb (Fund Manager) in a joint investment. This investment can be a transaction, a project or a fund to generate healthy profits. Profit can be gained if a minimum balance of Dhs 3,000 is maintained and the longer you keep money in the account, the more profit rate you will generate. 0.59% minimum for 1 month, 0.88% for 3 months, 1.003% for 6 months, 1.06% for 9 months, 1.18% for 12 months and 1.35% for 24 months. Dhs 25 is charged for not maintaining the required balance and no minimum salary is required.
Abu Dhabi Commercial Bank Islamic Banking - Millionaire Destiny Savings Account
The Millionaire Destiny Savings Account from ADCB Islamic Banking offers a monthly prize of Dhs 1 million ten prizes of Dhs 10,000 each and one hundred prizes of Dhs 5,000 each. You can earn 0.15 % profit rate if a minimum balance of Dhs 5,000 is maintained.
Other Savings Accounts
Emirates NBD Smart Saver Account
This account offers attractive interest rate of 1.75% for balances between
Dhs 100,000 to Dhs 5 million and 1.50% for Dhs 5 million & above. Interest is credited to your account monthly. The minimum balance required is Dhs 3,000 and you can set it up online very easily. You can only withdraw once a month.
Commercial Bank of Dubai Now-Save Now
The digital only flexible bank account pays an annual interest rate of 1.75% on savings up to Dhs 500,000 for the first nine months. This rate then drops to 1%. You can easily set up your account through a mobile app and there is no minimum balance requirement.
First Abu Dhabi Bank - Personal Savings Account
This FAB savings account offers competitive interest rates each month as well as a free of charge internationally accepted MasterCard debit card. A minimum balance of Dhs 3,000 is required. The account is available in Dirhams and other major currencies.
Union National Bank - Online Saver Account
This flexible account does not require you to maintain a minimum balance and can earn interest rates up to 1.75%.
HSBC Term Deposit Account
The HSBC Term Deposit Account, available to those with HSBC current accounts, requires you to save money for a specific period. The longer you save, the better the interest rate is. Savings of Dhs 150,000 for one month can get you interest rate of 0.58% rising monthly to 2.68% over twelve months.
First Abu Dhabi Bank iSave Electronic Account
This online account pays up to 3% a year. Savings rates up to Dhs 50,000 earn 0.50%, more than Dhs 500,000 get 2.25%, and 3% on balances above Dhs 5 million. There is no minimum balance requirement or restrictions on the number of withdrawals you can make.