Maturity value and interest on an AED fixed deposit.
Maturity value
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Interest earned
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Tax on interest
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Worked example
Place AED 100,000 in a 12-month fixed deposit at 4%. On a simple-interest basis the interest is the deposit times the rate times the term in years, so 100,000 multiplied by 0.04 multiplied by 12 over 12 is AED 4,000. The maturity value is the original AED 100,000 plus that AED 4,000, which is AED 104,000. Because the UAE has no personal income tax and no tax on interest earned by individuals, the tax on the interest is AED 0, so the full AED 4,000 is yours to keep.
Step
Amount
How it is calculated
This calculator uses simple interest, where interest is charged on the original deposit only, which is how most UAE banks quote a term deposit. The formula is deposit multiplied by the annual rate multiplied by the term in years, and the term you enter in months is divided by 12. Maturity value is the deposit plus that interest. A deposit that compounds, paying interest on accumulated interest, will return a little more than the simple figure, more noticeably over longer terms. There is no personal income tax in the UAE and no tax on individual interest, so the interest shown is what you actually receive, with nothing deducted at maturity.
Frequently asked questions
Is interest on a UAE fixed deposit taxed?
No. The UAE has no personal income tax and no tax on interest earned by individuals, so the full interest on a fixed deposit is yours to keep. This calculator shows simple interest, where interest is paid on the original deposit, which is how most UAE term deposits quote their rate. Compounding deposits will pay slightly more.
What is a typical fixed deposit rate in the UAE in 2025 and 2026?
Most UAE banks offer fixed deposit rates between 3% and 5.5% per annum for AED deposits, depending on the term and the amount placed. Rates on USD-denominated deposits tend to track US Federal Reserve decisions and can differ from AED rates. It is worth comparing offers from multiple banks, as promotional rates are common for new customers or larger deposit amounts.
What is the minimum deposit for a fixed deposit at a UAE bank?
Minimum deposit requirements vary by bank. Many UAE banks set the minimum at AED 10,000 or AED 25,000 for standard term deposits, though some digital and challenger banks accept lower amounts. Larger deposits often unlock preferential interest rates, so it is worth asking your bank about tiered pricing if you are placing a significant sum.
Can I withdraw a UAE fixed deposit before maturity?
Early withdrawal is permitted at most UAE banks, but it usually results in a penalty. The bank may reduce the interest rate to the standard savings rate for the period held, or charge a flat break fee. Some banks offer a partial early withdrawal feature on larger deposits. Always check the terms and conditions of the specific product before placing funds if you think you may need early access.