Term deposits of 6-12 month up to AED186.8 bn

Media IN/ Abu-dhabi/ 6th May, 2019 (WAM)

The 6-12 month term deposits in UAE banks surged to around AED186.8 bn during Q1-2019, a 3.7 growth of AED6.8 bn, official statistics by the Central Bank of UAE have showed.

The growth is attributed to a rising demand over this type of deposits following the significant increase in their value and their higher returns in comparison with other investment vehicles.

In January, this type of deposit amounted to AED182.2 bn in January, 1.2 percent up against December 2018. In February, they continued to rise to AED186.6 bn, a growth of 2.4 percent, before rising 1 percent in March.

It’s noteworthy that the interest rates charged by the Emirates Inter-Bank Offered Rate, EIBOR, hit new highs across all terms, with the six-month rate up 54.4 percent in 2018 and 12-month term leaping 39 percent, according to UAE Central Bank figures.