Raha Call Account


Raha Call Account

Raha is a call account deposit that is packed with exciting features:

  • An innovative product based on the EIBOR floating rate.
  • Flexible cash movements.
  • No cap on maximum amount.
  • Simplified interest fixing and calculation for our customers’ peace of mind.

Raha Call Deposit Account – Corporate Customers

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Call


Call Deposits

UAB Call Deposit Account provides competitive interest rates which is accumulated on a daily basis and paid by every month end. Flexibility to withdraw your funds with a minimum prior notice of 24-hours. Available to you in AED and all major currencies.

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Fixed


Fixed Deposits

UAB offers best funds investment opportunity, offering time deposits with highly competitive rates and flexible periods tailored to suit your needs and preferences. Time Deposits are available in AED and all major currencies.

Deposit Rates

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Floater


Floater

CharacteristicsDate: 1 October 2018

Currency

AED

USD

Interest Rate Payment

EIBOR 3 Month + 0.50% p.a.

US LIBOR 3 Month + 0.50% p.a.

Periodicity

Quarterly

Quarterly

Minimum Guaranteed Rate on 1 year Floater

2.50% p.a. for 1 year.

2.25% p.a. for 1 year.

Minimum Guaranteed Rate on 2 years Floater

2.75% p.a. for 2 years.

2.50% p.a. for 2 years.

Minimum Guaranteed Rate on 3 years Floater

3.00% p.a. for 3 years.

2.75% p.a. for 3 years.

Maximum Rate in all cases

5.00% p.a.

4.00% p.a.

Minimum Deposit on Personal Account

AED 100,000

USD 50,000

Minimum Deposit on Commercial Account

AED 2,500,000

USD 1,000,000

Tenor

Choice between one year, two years or three years

Choice between one year, two years or three years

Early Redemption

Possible, please refer to FAQ

Possible, please refer to FAQ

Overdraft Facility Against Deposit

Possible, please refer to FAQ

Possible, please refer to FAQ

Validity

This short term offer is valid until 30thNovember 2018, only for “Funds New To Bank”

This short term offer is valid until 30thNovember 2018, only for “Funds New To Bank”

Main Benefits

  • Customers are now rewarded with higher minimum guaranteed rates on 2 years and 3 years maturities.
  • Once a maturity is chosen the same minimum rate applies from the beginning until the full maturity of the deposit.
  • Higher returns for investors compared to conventional deposit products.
  • Minimum interest guaranteed. Protection against low interest rate scenario and undesirable fluctuation in the interest rates market.
  • In case of rising EIBOR or LIBOR rate client enjoys higher returns compared to a fixed rate placement.
  • One year minimum maturity. The investor can choose between 1, 2 or 3 years maturity.
  • Capital is protected at all times.

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Q.1 What are EIBOR and LIBOR?
Answer: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.

Q.2 Which minimum guaranteed rate is applied?
Answer: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.

Q.3 How are the minimum and maximum rates impacting the interest paid?
Answer: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.

Q.4 How is the interest on the Floater paid?
Answer:The interest is paid directly into the client’s current account, each quarter

Q.5 Can I cancel the deposit at any time?
Answer: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

Q.6 If I need money for short term requirement but would like to continue this product, what is the solution?
Answer: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.

Q.7 If I cancel the Floater after 3 months and I have received interests. Does the penalty apply on previously paid interests?
Answer: No. Any interest paid to a current account is definite. The potential penalty, if any, only applies on the current quarterly period.

{slide=Frequently Asked Questions}

Q.1 What are EIBOR and LIBOR?
Answer: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.

Q.2 Which minimum guaranteed rate is applied?
Answer: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.

Q.3 How are the minimum and maximum rates impacting the interest paid?
Answer: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.

Q.4 How is the interest on the Floater paid?
Answer:The interest is paid directly into the client’s current account, each quarter

Q.5 Can I cancel the deposit at any time?
Answer: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

Q.6 If I need money for short term requirement but would like to continue this product, what is the solution?
Answer: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.

Q.7 If I cancel the Floater after 3 months and I have received interests. Does the penalty apply on previously paid interests?
Answer: No. Any interest paid to a current account is definite. The potential penalty, if any, only applies on the current quarterly period.

 

Escalator


Escalator Deposit

Characteristics

Date: 1 October 2018

Currency

UAE Dirham

Minimum deposit amount

AED 25,000

Minimum Lock-in period

One year with freedom to choose maturity between one, two and three years

Interest Rates and Payment

Step-up rates as per below table. Semi-annual payments

Early Redemption

Possible(1)

O/D facility against deposit

Possible(2)

(1)Redemption:Redemption of the deposit before maturity is subject to a notice of at least two (2) UAE business days in writing and no penalty if deposit is canceled on any interest payment date, after 1 year. Otherwise the applicable penalty will be one percent on the interest rate applied.

(2)Overdraft / Loan Facility:Possible up to 90% of the deposit amount. In case of loan: at an interest rate of 2% p.a. over prevailing six months EBOR rate or deposit rate (whichever is higher) and in case of overdraft: 3% p.a. over EBOR rate or Deposit rate (whichever is higher), secured against lien on the underlying deposit.

Guaranteed step-up interest rates

 

Interest Period

 

Interest Rates per annum

 

1st Semester

 

2.65%

 

2nd Semester

 

2.85%

 

3rd Semester

 

3.00%

 

4th Semester

 

3.25%

 

5th Semester

 

3.75%

 

6th Semester

 

4.25%

Main Features of the Escalator

  • High returns for investors compared to conventional deposit products available in the market.
  • Protection against falling interest rate scenario and any undesirable fluctuation in the interest rates market.
  • Excellent tool for the corporate treasurer to optimize his cash management.
  • Capital is protected at all times.
  • No hidden fee on joining or early redemption (after 1 year), deposit is not linked to any market instrument.

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Q.1 : Can I cancel the deposit at any time and without penalty?
Answer:Yes, a deposit amount booked under Escalator can be redeemed fully or partially (provided remaining amount is not less than required minimum deposit amount) with two UAE business days notice in writing. There will be no penalty if deposit is redeemed on any six monthly interest payment dates, after the first year.

Q.2 Can I cancel and invest subsequently in this product again?
Answer: Yes you can cancel, but reinvesting in the product would be subject to prevailing rates at that time.

Q.3 If I need money for short term requirements but would like to continue this product, what is the solution?
Answer:UAB provides customer financing facilities (up to 90% of the deposit amount) against this product at a very attractive price to meet any short-term cash flow requirement.

Q.4 If I have funds lower than the minimum deposit amount, what other product is the bank offering?
Answer:Please don’t hesitate to contact your relationship manager to hear about other attractive deposit products for smaller amounts

Q.5 Is it possible to have this product in other currencies?
Answer:Yes, we can structure similar product in other major currencies and with various maturities. Please contact your relationship manager with your specific needs.

Enhanced Escalator


Enhanced Escalator Deposit

Characteristics

Date: 1 October 2018

 

Currency

AED

USD

Minimum Personal Account

AED 100,000

USD 25,000

Minimum Commercial Account

AED 2,500,000

USD 500,000

Minimum Tenor

One year with freedom to chose maturity between one, two and
three years

Interest Rates / Coupon

Step-up / semi-annual coupon payments

Early Redemption

Possible, with no penalty if cancelled on interest payment date
after one year. If cancelled within the first year, a 1% penalty on
interest rate is applied

Fixed Interest Rate

EED offers customers competitive rates and pays a fixed coupon
(per annum) that increases with time

Overdraft Facility Against
Deposit

Available against the deposit under lien

Maturity Price/ Redemption Price

100% of the initial deposit

Validity

Offer is valid until 30th November 2018

Indicative Fixed Rate Series 1

 

Interest Period

 

EED Interest Rates
(per annum)

 

AED

 

USD

 

1st semester

 

2.85%

 

2.50%

 

2nd semester

 

3.10%

 

2.75%

 

3rd semester

 

3.35%

 

3.00%

 

4th semester

 

3.75%

 

3.25%

 

5th semester

 

4.00%

 

3.50%

 

6th semester

 

4.50%

 

4.00%

Main Features of the Product

  • 12 Months minimum maturity. Investor can choose the deposit for up to 3 years maturity.
  • Investor is paid attractively across different periods with attractive yields on a semi annual basis
  • Protection against a falling interest rate scenario and any undesirable fluctuation in the interest rates market.
  • In case of falling interest rates client enjoys higher returns compared to a fixed rate placement.
  • Capital is protected at all times along with flexibility of withdrawal at each interest payment date.

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Q.1 : Can I cancel the deposit at any time?
Answer:Yes, any deposit amount booked under the Enhanced Escalator Deposit can be redeemed (provided the outstanding amount remains higher than the minimum amount required). Redemption of the deposits before maturity is subject to a notice of at least two (2) UAE business days in writing and no penalty if deposit is cancelled on any interest payment date after 12 months, otherwise applicable penalty will be 1% on the interest rate applied.

Q.2 Can I cancel and invest subsequently in this product again?
Answer: Yes, you can cancel at any time subject to specified conditions, but reinvesting in the product would be subject to the prevailing market rates at that time.

Q.3 If I need money for short term requirement but would like to continue this product, what is the solution?
Answer:UAB may provide customers with an overdraft (up to 90% of the deposit amount) against this product at a very attractive price to meet any short-term cash flow requirement. Interest on overdraft is at 3% per annum over the deposit rate, secured against lien on the underlying deposit. The rate of the lending facility fluctuates semi-annually (Please contact your relationship manager for more details. Subject to internal approvals).

Q.6 Is it possible to have this product in other currencies?
Answer: For this particular product we are offering rates in 2 currencies AED, USD

Flexi-Fixed


Flexi-Fixed Deposit (FFD)

Characteristics

Date: 1 October 2018

Currency

AED

Minimum Deposit Amount

Personal Account - AED 100,000
Commercial Account - AED 2,500,000

Tenor

1 year, 2 years or 3 years tenor

Interest Rates

Interest paid at the time of full withdrawal (predefined)

Early Redemption

Possible, no penalty on full early termination; interest paid on
predefined rates

Fixed Interest Rate

This deposit offers customers a fixed rate of up to 5% per annum
for the full 3 years

Overdraft Facility Against Deposit

Available against the deposit under lien

Validity

For funds New to Bank only; rates valid until 30th November 2018

Main Benefits

  • Customers can choose a deposit tenor of 1, 2 or 3 years maturity
  • Capital protected at all times
  • Flexible, transparent and high interest compared to simple deposits, as per below graph
  • Full interest paid at maturity or at the time of withdrawal, as per below graph
  • No penalty on early exit

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Q.1 Can I cancel the deposit at any time?
Answer:Yes, the full deposit amount booked under the Flexi-Fixed Deposit can be redeemed. Redemption of the deposit before maturity is subject to a notice of at least two (2) UAE business days in writing and zero interest on deposit if cancelled before three months, otherwise the applicable interest rate is applied. Only the full amount can be redeemed.

Q.2 : When will I receive the interest?
Answer: The full interest amount will be paid at the end of the deposit, at maturity, and in one payment. If the deposit is cancelled before maturity, the full interest amount will be paid at the time of cancellation.

Q.3 What is the appropriate rate to use in case of early redemption?
Answer: Please follow the table. Match the number of months at the bottom of the graph with the number of months you remained in the deposit. Look up the interest rate corresponding with the number of months. This rate will be used to calculate your total interest for the full tenor of the deposit, from the beginning until maturity (or until time of withdrawal as decided by client).

Example 1: If you complete 3 months and requested to exit the Flexi-Fixed, the corresponding rate is 2.50% per annum. Your deposit will be accrued at 2.50% for 3 months

Example 2: If you complete 18 months (one and a half year), the corresponding rate will be 4.15%. Your deposit will be accrued at 4.15% for 18 months.

Example 3: If you complete the full 3 years (36 months), your deposit will be accrued at the highest rate of 5% for the full 3 years.

Q.4 How does the Interest compute in case of early termination?
Answer: This product is launched as a 1 or 2 years deposit facility, offering transparency and flexibility. All rates across the time buckets are predefined.

Example 1: a customer decides to place AED 1,000,000 in a 2 years deposit at 3.00% p.a., at the end of 2 years customer will receive AED 1,060,000. If customer needs the full amount after 6 months, then 6 months rate will apply (No Penalty will be charged) resulting in customer receiving 2.20% p.a. for 6 months i.e. AED 1,011,000.

Example 2: a customer decides to place AED 1,000,000 in a 2 years deposit at 3.00% p.a., at the end of 2 years customer will receive AED 1,060,000. If customer needs the full amount after 100 days (Which is more than 3 months and less than 4 months), 3 months rate will apply (No Penalty will be charged) resulting in customer receiving an interest of 1.75% p.a. for 100 Days i.e. AED 1,004,861.

Q.5 : Is it possible to have this product in other currencies?
Answer: We offer a Flexi-Fixed deposit in USD (US Dollar), for more information please contact your relationship manager

PCA


Premium Call Account (PCA)

Characteristics

Currency

AED

USD

Minimum Account Opening Balance

AED 1,000,000

USD 250,000

Minimum Balance required for interest payments

AED 1,000,000

USD 250,000

Maximum Account Balance

No Maximum

PCA Base Rate

1.25% p.a.

1.00% p.a.

PCA Base Rate Period

Each calendar month

Condition

Paid on lowest calendar monthly balance

PCA Withdrawal Rates

Base Rate + Premium Rate

Condition

Paid according to the number of withdrawal notice days



Withdrawal Notice

Premium Rate

8 days

0.25% p.a.

0.15% p.a.

15 days

0.35% p.a

0.25% p.a.

32 days

0.50% p.a

0.50% p.a.



Customer Type

Individual and Commercial

Validity

New to bank funds only

Please refer to your relationship manager for account opening and withdrawal forms

Main Benefits

  • Earn call account rates of up to 1.75% p.a.
  • At the end of each calendar month the account holder receives a base interest on the lowest monthly balance
  • Unlimited withdrawals
  • Up to 0.50% p.a. additional premium interest on each withdrawal given with a written notice in advance
  • The longer the withdrawal notice period, the higher the interest received by the account holder
  • No Maintenance charges on this account type

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Q.1 How is PCA different from a normal Call account?
Answer:PCA is similar to a Call account but offers superior interest rates linked to the withdrawal notice period, unlike a normal call account where the interest is paid at the same rate. This account encourages account holders to enjoy the liquidity as well as to earn higher interest rate.

Q.2 How is the base interest paid on PCA?
Answer: The fixed base interest rate is paid on the lowest balance in the account during a full calendar month. The base interest is paid at the end of each calendar month. No interest will accrue or be paid on PCA during the first month of joining if the first 30 full days are not completed.

Q.3 Can I make any amount of withdrawals, any time?
Answer:There is no restriction on the number and amount of withdrawals from this account. Customers can withdraw any amount at anytime. Customers will continue to receive the base interest rate at the applicable rate for the lowest balance in the account during the month. However, note that in order to enjoy the PCA benefits on any given calendar month, customers must abide by the minimum balance.

Q.4 What if I do not serve an advance withdrawal notice to the Bank?
Answer:You will get the base fixed interest rate (i.e. 1.25% p.a. on AED and 1.00% p.a. on USD) based on minimum balance observed during the 30 days; but no additional premium will be paid on the withdrawal amount. The same will apply if the notice period is lower than 8 days.

Q.5 What if I do serve withdrawal notice to the Bank?
Answer:
For example: on your PCA you serve 32 days notice for a AED 1,000,000 withdrawal.

  • We will pay you 32 days of interest on AED 1,000,000 at a rate of 1.75% p.a. ‘1.75% p.a.’ corresponds to the base rate (1.25%) plus the additional premium (0.50%) as per the table on the previous page. At the end of the notice, the withdrawal amount and interest accrued on the withdrawal will be credited to your current account with United Arab Bank.
  • At the end of the calendar month, you will also receive 1.25% p.a. on the lowest balance recorded on the same month (this depends on the account activity in that specific period).

Q.6 What happens if a withdrawal puts the account balance below the PCA minimum amount?
Answer:For that specific calendar month, the account will serve no base interest and no premium interest. For the account to be treated as a PCA, the balance must remain above the specified minimum at all times.

Q.7 Can I convert my existing Call Account to PCA Account?
Answer:No, you cannot convert any Call or Current Account into a PCA. A new account has to be opened with new to bank funds. For the bank’s existing customers, only a signed form will be required.

Q.8 Can I open more than one PCA account?
Answer:You can only open one PCA under the same name. However, you can open a separate joint PCA with another person, in case of an individual client.

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