Looking for the best fixed deposit rates in the UAE? We have compared FD rates from 10+ banks in the United Arab Emirates for 2026, covering tenures from 1 month to 36 months, conventional and Islamic options.
Current UAE fixed deposit rates range from 2.75% to 4.25% per annum depending on the bank, tenure, and deposit amount. Here are the best options for April 2026.
Best Fixed Deposit Rates in UAE โ April 2026
| Bank | Rate (p.a.) | Tenure | Min. Deposit | Type |
|---|---|---|---|---|
| Sharjah Islamic Bank (MaxPlus) | 4.25% | 18 months | AED 10,000 | Islamic |
| Sharjah Islamic Bank (MaxPlus) | 4.00% | 36 months | AED 10,000 | Islamic |
| Dubai Islamic Bank | 3.95% | 12 months | AED 10,000 | Islamic |
| FAB | 3.25% | 12 months | AED 10,000 | Conventional |
| ADCB | 3.15% | 12 months | AED 10,000 | Conventional |
| Emirates NBD | 2.75% | 12 months | AED 10,000 | Conventional |
| RAKBANK | ~3.0% | 12 months | AED 5,000 | Conventional |
Rates as of April 2026. Verify directly with banks before depositing โ rates change frequently.
Key Insights for 2026
- Islamic banks lead โ SIB MaxPlus (4.25%) and DIB (3.95%) offer the highest rates, using Wakala (investment agency) or Mudarabah (profit-sharing) structures
- Short-term rates are lower โ 1-3 month deposits typically earn 3.0โ3.6%. Best value is in the 12-18 month range
- Digital banks compete โ Some digital banking products offer up to 6% under specific conditions (salary transfer, minimum balance)
- No tax on interest โ The UAE has no personal income tax, so FD returns are tax-free for residents
- CBUAE insured โ Deposits up to AED 100,000 are protected under the UAE Deposit Insurance Scheme
Islamic vs. Conventional Fixed Deposits
Islamic fixed deposits (called Term Investment Deposits or Wakala Deposits) don't pay interest. Instead, the bank invests your money in Shariah-compliant assets and shares the profit. The expected profit rate is disclosed upfront but not guaranteed โ though in practice, UAE Islamic banks almost always meet the expected rate.
Frequently Asked Questions
What is the best fixed deposit rate in UAE right now?
As of April 2026, Sharjah Islamic Bank's MaxPlus offers the highest rate at 4.25% for 18-month tenure. Dubai Islamic Bank offers 3.95% for 12 months. Conventional banks top out around 3.25% (FAB).
What is the minimum amount for a fixed deposit in the UAE?
Most banks require a minimum of AED 10,000. RAKBANK accepts deposits from AED 5,000. Premium products with higher rates may require AED 100,000 or more.
Are fixed deposits in UAE tax-free?
Yes โ the UAE has no personal income tax. Fixed deposit returns are completely tax-free for residents. However, if you're a tax resident of another country, you may need to declare the income there.
Can expats open a fixed deposit in the UAE?
Yes โ expats with a valid Emirates ID and UAE bank account can open fixed deposits at any bank. No salary transfer requirement for most FDs.
What happens if I break a fixed deposit early?
Most UAE banks allow early withdrawal with a penalty โ typically loss of interest for the broken period or a flat fee. Check your bank's specific terms before opening a deposit.
Compare Bank Accounts in the UAE โ
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How We Compare Fixed Deposit Rates in UAE 2026
Our editorial team researches FD rates from official bank websites and rate sheets published by CBUAE. Rates are verified monthly. We compare both conventional and Islamic deposit products across tenure, minimum amounts, and special conditions.
Buzdy compares products from 527 banks across 51 countries โ our rankings are based on objective criteria outlined in our methodology.
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