In the UAE, many residents are choosing longer saving deposits with banks and financial schemes. They want to take advantage of high returns before interest rates decline. As interest rates remain high, people are eager to lock in good returns for the future.
Mohammed Qasim Al Ali, Group CEO of National Bonds, said, “People prefer long-term saving products now. They want to secure high rates before they drop.” National Bonds offers products such as the Second Salary and Booster plans. These plans allow investments from three to 10 years, with returns between 3% and 4%.
Interest rates in the UAE are expected to decrease in line with the US Federal Reserve’s actions. Experts predict that the Fed will lower rates twice this year. As a result, more residents are putting their money into longer-term savings products. This shift helps them maximize returns before rates start to fall.
Shariah-compliant banks and financial institutions offer profit rates instead of interest. National Bonds, for example, allows residents to save with as little as Dh1,000 a month. Investors can choose a period between three to 10 years and earn strong returns.
Al Ali explained that saving is no longer seen as a burden. “More people view saving as a way to reach financial goals. They understand the benefits of saving in long-term products with high returns.” These savings products are seen as risk-free options compared to other investments.
National Bonds saw impressive growth in 2024. The number of regular savers grew by 51%. It added 45,800 new customers, and its investment portfolio reached Dh15.8 billion, a 22% increase from last year. The company also announced that bondholders earned up to 4.75% returns in 2024.
The company is also focusing on technology. It is exploring AI-powered solutions like a robot advisor. These tools help customers save, invest, and manage debt. As a result, digital savings grew by 41% in 2024.
Additionally, National Bonds plans to expand its real estate portfolio. In 2025, the company will open an office tower in Barsha Heights.
