The Emirates InterBank Offered Rate (EIBOR), published by the UAE central bank is the filtered average of the interest rates charged by banks in the country. It is widely used in the GCC by borrowers and lenders to conduct financial transactions.

In the same manner the London InterBank Offered Rate (LIBOR), is a filtered average of a selection of international banks for use in global markets.

If you choose a 3 years AED Floater, the minimum guaranteed will be highest: 2.50% from beginning until maturity or redemption. If you choose a 2 years AED Floater, the minimum guaranteed will be 2.25% from beginning until maturity or redemption, for year 1 and also for year 2. Finally, a 1 year AED Floater will carry a minimum guaranteed of 2.00% for the entire year. You will have a higher guaranteed rate with the 3 year Floater.

For a AED Floater deposit with 3 years maturity: Example 1: If EIBOR fixes at 1.50%, we calculate: 1.50% + 0.50% = 2.00% p.a. But the client still receives the minimum rate of 2.50% Example 2: If EIBOR fixes at 2.25%, we calculate: 2.25% + 0.50% = 2.75% p.a. The client receives exactly 2.75% Example 3: If EIBOR fixes at 4.75%, we calculate: 4.75% + 0.50% = 5.25% p.a. But the client will receive the maximum rate of 5.00% The same applies to the USD Floater with the US LIBOR as index.

The interest is paid directly into the client’s current account, each quarter.

Yes, partial withdrawals are allowed, any deposit amount booked under Floater can be redeemed (provided the outstanding amount remains higher than the minimum amount required) with five UAE business days notice, given in writing. Penalties apply: No interest paid if cancelled during the first 3 months. After 3 months, a penalty of 1% on the rate of interest, only on the specific last quarter will be applied. You can choose to subsequently reinvest in the Floater later, subject to prevailing market rates at that time .

UAB may provide customers with an overdraft against this product at an attractive price to meet any short-term cash flow requirements. The facility is secured against lien on the underlying deposit. The rate of the lending facility fluctuates quarterly with the rate of the Floater deposit rate. Please contact your relationship manager for further details. Subject to bank’s approval.

No. Any interest paid to a current account is definite. The potential penalty, if any, only applies on the current quarterly period.