UAE Savings: Best accounts to start 2025 with
- Kacper Duda
- Jan 22
- 3 min read
If you followed us closely this year, you're hopefully on your way to setting financial goals for 2025 and building a household budget. These ultimately form a plan for the year ahead.
As with any plan, implementation is key. Having your money in the right places, depending on your goals, will ensure it's protected and keeps growing. So today, we'll look at the best savings accounts to help you achieve your objectives faster.

What will happen to AED savings rates this year?
It's impossible to know. The UAE savings rates move in line with the base rate set by the UAE Central Bank (CBUAE), which mirrors moves by the US Federal Reserve.
The market expects US rates to come down by 0.25-0.5% over the course of the year. If that happens, it's very likely that savings rates in the UAE will also go down by a similar amount.
So should I switch my savings account?
If you're earning less than 4% interest on your AED savings - yes, absolutely. In a climate of falling interest rates, you need to make sure your money works for you as hard as it can. After all, you don't want to see your gains eradicated by inflation.
Anything above 4% is is okay (for now). Keeping your savings in the right place is a game of observing, learning and adjusting. So when interest rates change, or new bank accounts open, it may be the right time to switch (and we'll always try to keep you up-to-date as much as we can).
Best savings accounts out there today
Rates have further come down since our last update in November, leaving the field of good options fairly limited. What's best will always depend on your circumstances, so make sure you work through this for yourself.
Bank account | Rate | Any catches |
---|---|---|
4.4%-4.75% fixed term, 3.75% variable | The 1-month (4.75%) and 3-month (4.5%) fixes don't have any withdrawal penalties, so we'd recommend them over the flexible savings space for now. Min. AED 35,000 required for Wio Plus. | |
4.5% variable | Variable rate, may change at any time. Min. balance of AD35,000 required. One withdrawal per month without losing interest. | |
5% variable | This rate is applicable until 31/01 on new funds only after which it may drop to ca. 2.5%. FAB continues to extend this promotion repeatedly but there are no guarantees beyond 31/01 so monitor carefully. |
What does fixed vs. variable savings mean?
There are two types of savings accounts you can choose from:
Easy-access (variable rate) account - With this type of savings account your money earns interest every day and stops earning interest when you withdraw it. The downside is that the interest rate is fully variable and there is no guarantee that the rates will continue at the level you sign up at. As we expect the rates to go down you might risk the rate falling soon after you put your money in.
Fixed-term accounts - You fix your interest rate with the bank for a set period of time (usually 1, 3, 6 or 12 months) in exchange for keeping the money in the account for that period. IMPORTANT: You can always access your money (so it's not locked away). The only thing that might happen is that you get reduced or no interest on your savings if you take them out early.
What we would do
With interest rates expected to go down, now is still a good time to fix, as the variable rates will likely be impacted first. Whether you should fix for 3, 6 or 12 months, will depend if you expect to require access to the funds. We do expect the 4.4% for 12-month fix rates to remain competitive throughout the year.
Are savings accounts safe?
Yes. While there is no deposit protection scheme in the UAE, all the savings accounts we suggest are regulated by the UAE Central Bank and are generally considered safe. You can always check the list of CBUAE-regulated banks to make sure.
Happy savings!
Disclaimer: Please bear in mind that this email does not constitute financial advice. Any choices you make you are solely responsible for. We always aim to provide highest quality, independent views but do your own research to ensure you’re comfortable with any changes you make to your personal finances.